A report says one of the most picturesque post offices in Nova Scotia has been shut down by Canada Post.

CBC News says a decade's old post office inside the Peggy's Cove lighthouse was moved to a local gift shop after it was damaged in a storm and mould was discovered inside.

The report says Canada Post officials came by last week and closed the operation for good after it couldn't reach an agreement on repairs with the federal Department of Fisheries and Oceans, which owns the lighthouse.

Gift shop owner John Campbell, says he's been asked to take the postal franchise, but he says he wants the post office back in the lighthouse during the summer months.

Canada Post says it hopes to reopen a post office in Peggy's Cove next year, but it doesn't know where.

Officials say right now the lighthouse is not an option.