Mustvee town - the capital of Peipus. Mustvee is a town and municipality in Estonia. It lies on the shore of Lake Peipus in Jõgeva County. Its population of 1,600 is approximately half Estonian and half Russian. The name of Mustvee was first recorded in 1343 at the time of reign of Livonian order. It became a haven for Russian Old Believers after the Russian government declared them outlaws in 1658. Mustvee has held fairs for the past two centuries.