Peace Lutheran is the result of a merger of two old neighboring congregations: Zion, founded in 1884; and Salem, founded in 1894. Zion was organized on February 25-26, 1884 with 19 Norwegian men present. Rev. Christian Jorgenson served as pastor and organizer. The first parochial school was held in the home of Rasmus Knutson. The picturesque setting on the hill above Silvana on which the church and cemetery are located was given by S. A. Erickson in 1884. Services were held in homes and schools until the church was completed in 1890. Known as the Little Church on the Hill, the building is still used by the congregation in the summer months and is on the National Register of Historic Places. Salem congregation was organized on April 30, 1894 when a minority group left Zion over a dispute with church practices. In 1897, members voted to federate with a newly organized Lutheran Church of America. The church was erected in 1898. Property for the church and cemetery was contributed by the members. Several propositions for a merger with Zion came up in later years, and on September 30, 1962, a majority voted to merge. In 1973, Peace, the merged congregation, purchased property for the site of the new church which was completed September 10, 1978.
From the guide to the Peace Lutheran Church, Silvana, Washington, Records, 1884-2012, (Pacific Lutheran University)