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Prince Edward Island was an island in North America near Nova Scotia.
In 1002, after sailing through the Saint Lawrence Gulf and along the Gaspé Peninsula, the First Doctor, Barbara, Susan and Ian sailed with Eric the Red sailed along a small bay sheltered by Prince Edward Island. From there they could see their destination, Nova Scotia. (PROSE: Who Discovered America?)
Behind the scenes
In the real world, Prince Edward Island is a province in Canada.