We compare the stellar structure of the isolated, Local Group dwarf galaxy Pegasus (DDO 216) with low-resolution H I maps from L. M. Young et al. Our comparison reveals that Pegasus displays the characteristic morphology of ram pressure stripping; in particular, the H I has a "cometary" appearance that is not reflected in the regular, elliptical distribution of the stars. This is the first time this phenomenon has been observed in an isolated Local Group galaxy. The density of the medium required to ram pressure strip Pegasus is at least 10(-5) to 10(-6) cm(-3). We conclude that this is strong evidence for an intergalactic medium associated with the Local Group.