Peoria was built at the New York Navy Yard; launched on October 29, 1863, and commissioned on December 26, 1866, Commander Oscar C. Badger in command. Assigned to the North Atlantic Station, Peoria got underway from New York on January 6, 1867, for shakedown along the southeast coast. Returning to Hampton Roads, Virginia on March 12, she sailed on April 14 for the West Indies.