Peggys Pool is located on a tributary of Linden Creek within meeks Gully, you can access the walking track off Meeks Crescent opposite the Faulconbridge Public School. More details about the walk can be found here. Not the prettiest of falls to be sure, just a single drop over a rock shelf, but it can make for a nice spot to cool off in summer.
The walk can be slippery in places on sloping rock, but is still suitable for kids, takes about 10 minutes of so from the street to the pool and small falls, with one big step down a small rock shelf just before the pool and falls.
The pool can change between storms, it can be fully silted up, or deep, when I last visited you would be able to sit in it but not swim, a good depth for small children and pretty safe to do so.