Peter Rabbit was based on a real rabbit, one of a menagerie of pets Beatrix Potter had as a child.

Peter Rabbit was based on a real rabbit, one of a menagerie of pets Beatrix Potter had as a child. He lived with Potter from 1892 to 1901, his home a hutch out in the garden. But Potter's love of animals often resulted in his extended stays indoors. In fact, Potter often told stories of how he enjoyed lying in front of the fire like a pet cat.
In 1893, Beatrix wrote and illustrated a letter to 5-year-old Noel Moore, son of her former governess and close friend. In it was a story about her petrabbit, Peter. The story was well received by Noel and others.
In 1900, the story's growing popularity led Potter to expand the letter into a little picture book with several of her own black-and-white illustrations. Submitted and rejected by several publishers, Potter printed "The Tale of Peter Rabbit" herself, giving copies to family and friends.
The book eventually impressed the London publishing house of Frederick Warne & amp; Company, which agreed to publish it if the author provided color pictures. The book as it is known today with Potter's beautiful watercolors was officially published in October 1902. It cost 1 shilling -- about 7 cents in U.S. currency.
Potter began merchandising the Peter Rabbit character in 1903, securing a patent for a doll, jigsaw puzzle, wallpaper and a game of her own invention. Today, the Peter Rabbit and World of Beatrix Potter franchise overseen by Frederick Warne, a division of Penguin Putnam Publishing, yields $500 million a year in international sales.
Peter Rabbit is one of the world's most popular and recognized children's literary characters. His story has been reprinted 250 times and translated into 35 languages and was reported to be one of the best-selling children's classics of all time by Publishers' Weekly in 1996.
Potter created other stories based on animals. Among them: Jemima Puddle Duck, Mrs. Tittlemouse, Mrs. Tiggy-winkle (based on her pet hedgehog), Jeremy Fisher and Little Pig Robinson (another pet).