Born in Villa de Catadiano near Vitoria, Fray Pedro Arce made his profession as a religious of the Order of Saint Augustine in the convent of Salamanca in 1579. Sent to the Visayas he became a missionary in Panay (1587) and then in Otong (1593). He was elected Prior of the Convent of Santo Nino in Cebu in 1596, and later Prior of the Convent of San Agustin in Manila in 1599. As superior of San Agustin, he started the construction of both the convent and Church of San Agustin. In 1602 he was elected Provincial of the Order, and then in 1807 he occupied the position of both Rector and Provincial.
On May 17, 1809 King Philip III presented Fray Pedro Arcs for the bishopric of Nueva Caceres which with permission from the Holy See and the Spanish Crown Fray Arcs was allowed to exchange for the bishopric of Cebu which was originally assigned to Fray Pedro Mathis de Andrade. He was consecrated in Manila by Archbishop Diego Vasquez de Mercado A longer narration would be needed in order to treat the virtues practised by Fray Pedro Arce both as a religious missionary and as a bishop.
He established a convent for the Recollect Fathers to whom he entrusted the mission territories of Caraga and other places in Mindanao. Twice he became ecclesiastical governor of the Archdiocese of Manila, but when he was appointed for the third time he renounced the position for serious reasons. A true father of the poor, Bishop Arce died on the 16th of October 1645 at the age of 85. He was 34 years a bishop. He was buried in the presbytery of the Church of Santo Nino in Cebu.