Jordon Brown fired Peterhead into a 19th-minute lead and Jordan Tapping's own goal doubled the hosts' tally. Rory McAllister netted his 18th of the season from the penalty spot just on half-time and Andy Rodgers added his side's fourth goal five minutes after the interval.
Second-placed Annan Athletic beat Berwick Rangers by the same scoreline. Ally Love's 38th-minute penalty sent Annan on their way and Kenny MacKay's header made it 2-0 soon afterwards.
A sumptuous lob from MacKay in the 71st minute rendered Annan's lead unassailable before Peter Watson's late strike rubbed salt in Berwick's wounds.
Clyde climbed to third courtesy of a 4-0 demolition of Elgin City at Broadwood. Michael Daly struck a 33rd-minute opener and the highly-rated Scott Ferguson added a second after the break. Daly fired home again in the 80th minute and substitute Gordon Young notched a late fourth.
Stirling Albion slid to fourth place despite salvaging a 2-2 draw with bottom side Queen's Park. Blair Spittal gave Queen's Park a surprise lead that was doubled by Gavin Mitchell in the 33rd minute.
Three minutes later, though, Scott Gibson's own goal halved Stirling's arrears and Craig Comrie's 57th-minute equaliser rescued a point.
Montrose came from behind to beat Albion Rovers 2-1 at Links Park. Gary Phillips' 52nd-minute strike put Rovers ahead but the hosts replied with two goals within four minutes from Scott Johnston and Terry Masson.