Peterson began working for the
Amateur Hockey Association of the United States (AHAUS) in the mid-1970s, writing a manual on coaching goaltenders. He served as an assistant coach to
Lou Vairo on the
United States men's junior team at the
1983 World Junior Championships. As head coach of the United States men's team at
Ice Hockey World Championships, Peterson led them in
1985,
1986, and
1987. He also served as head coach of the United States men's junior team which won its first
IIHF World Junior Championship medal with a bronze in
1986, and a fourth-place finish in
1987. He later served as head coach for the US men's national team at the 1987
Pravda Cup.
1988 Winter Olympics hosted ice hockey games at the 1988 Winter Olympics.|alt=Winter panoroma of Calgary including the exterior of the Saddledome The AHAUS chose Peterson as head coach of the United States men's team for
ice hockey at the 1988 Winter Olympics, when it desired a coach who was committed to the players and teaching, instead of furthering his own career. Peterson called the international media "dishonest, lazy and uninformed", and also stated "I have a tough time believing some of you have ever seen a hockey game". After the 1988 Winter Olympics, Peterson worked as the director of coaching and player development for AHAUS. He conducted coaching clinics across the nation, and wanted to change the perception that a player had to go to a
college-preparatory school in the Eastern United States for better coaching. He also advocated more quality coaching time for youths, and to have two practices per game played.
1992 Winter Olympics hosted ice hockey games at the 1992 Winter Olympics.|alt=Winter panorama including the village skyline, surrounding mountains and ski hills
USA Hockey chose Peterson as head coach for the United States men's team in
ice hockey at the 1992 Winter Olympics. Despite the previous criticism, Art Berglund felt that Peterson deserved a second chance, and stated that "most of the criticism was unfair". Selection committee chairman Bob Fleming, stated that Peterson was chosen because he had more continuous international experience. The choice of Peterson as coach was criticized by
Sports Illustrated, which wrote that teaching was Peterson's primary weakness, and reported that national team players compared the instruction they received from Peterson and his staff compared to coaching in college, instead of preparing them for a high-level games. The exhibition schedule for the 1991–92 season included 60 games, more practice time, and higher-caliber opponents. Peterson coached the national team in 21 games versus NHL teams, 14 versus the
Canada national team, and eight versus the
Russia national team. USA Hockey also had Peterson coached on public relations and dealing with the media. Patrick Reusse wrote in the
Star Tribune, that Peterson later proved he could coach by leading a lesser-talented team to a fourth-place finish at the 1992 Winter Olympics. After the Olympics, Peterson worked as the director of coaching and player development for USA Hockey from 1992 to 1997. ==Personal life==