Peat pots (pots made out of peat moss) are a product that people like because they are told to simply plant the pot with the plant.
In theory, peat pots and other biodegradable pots are a great idea and there are many options similar biodegradable peat pots (pots made out of coconut fiber and even processed cow manure). However, we find that it is a bad idea to simply plop these pots into your garden. The problem is that if the edges of the pot stick up above the soil level and the wind hits the edge above ground, then it has the potential to wick all the moisture out from the whole pot and can kill or stresses the plant.
So, if you want to use a peat pot or other biodegradable pot, be sure that just before you set the plant in the soil you rip off the exposed upper edge above the pots soil line so that the edge is even with the soil line in the pot. This will prevent the moisture from wicking out of the pot. Also be sure that none of the pot is exposed to the air after planting.
Often our alkaline soils slows down the ability of the roots to escape through the pot so it helps to poke some holes in the bottom of the pot to insure the roots can escape from the pot into the surrounding soil.