He held the internal affairs, arts, police and defence portfolios during his political career.
Sir Peter had a lifetime of public service including several years as a councillor and deputy mayor of Rotorua.
He also served on a number of Maori land trusts around Rotorua and was also vice-captain of the 1954 New Zealand Maori rugby team.
Te Arawa kaumatua Te Wano Walters welcomed mourners on to the marae, with a special mention for Ngati Porou kaumatua who had travelled with Sir Peter's body from Ruatoria.
Rotorua Deputy Mayor Trevor Maxwell said he was deeply saddened by Sir Peter's death.
"I learned, listened and observed a lot from him."
Waiariki MP Te Ururoa Flavell said he did not know Sir Peter well, but he left a great legacy in Parliament.
"There are pictures of all the Maori MPs next to the old select committee room and his, of course, is up there. It is a very special and spiritual place and he will be well remembered."
Sir Peter is survived by two sons and two daughters. His wife, Lady Diane, died in 2008. The funeral service will be today at 11am at Whakaue Marae.
-APN