Peterson was born on August 22, 1961 in Northridge, Los Angeles, California. Peterson has been married to English sound engineer Steven Botting since 1989. They have two children.
She had already established her first band in high school, and started a solo career after the separation of The Bangles in 1990. In 1992, she formed the short-lived duo Kindred Spirit with Siobhan Maher, formerly of River City People.
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