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    <periodOfReport>2010-12-31</periodOfReport>

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        <issuerName>PEOPLES BANCORP OF NORTH CAROLINA INC</issuerName>
        <issuerTradingSymbol>PEBK</issuerTradingSymbol>
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            <rptOwnerStreet2></rptOwnerStreet2>
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            <rptOwnerState>NC</rptOwnerState>
            <rptOwnerZipCode>28658</rptOwnerZipCode>
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            <ownershipNature>
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                <natureOfOwnership>
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    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">shares received for 15 Year Service Award</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>Benjamin I. Zachary</signatureName>
        <signatureDate>2011-02-14</signatureDate>
    </ownerSignature>
</ownershipDocument>
