Recently, I think in 2007, Peru switched over to regions. This affects django.contrib.localflavor.pe.PEDepartmentSelect, which should be renamed to PERegionSelect. Also, the Callao Region should be added.
Another issue, although related to this change, is that the Province of Lima (which is separate from Lima Region) is not part of any Region. This is similar to the U.S., where Washington D.C. is independent from other states. The difference is that more than one third of Peru's population lives in the Lima and Callao Metropolitan Area.
The proposed solution is to create a PEDivisonSelect (and, subsequently, a USDivisionSelect), which include all top-level divisions of the countries. Note that, for example, USStateSelect includes Puerto Rico, which is not a state, but a commonwealth. (http://en.wikipedia.org/wiki/Puerto_Rico#Within_the_United_States). It would be included in USDivisionSelect.