Peters Colony (Peters' Colony) is a name applied to four empresario land grant contracts first by the Republic of Texas and then the State of Texas for settlement in north Texas. The contracts were signed groups of American and English investors originally headed by William Smalling Peters.he area of Peters Colony was large. It included all or portions of Denton, Collin, Cooke, Grayson, Dallas, Tarrant, Wise, Palo Pinto, Ellis, Johnson, Montague, Parker, Hood, Clay, Jack, Erath, Wichita. Archer, Young, Stephens, Eastland, Wilbarger, Baylor, Throckmorton, Shackelford, and Callahan counties.