The disclosure relates to a method of preventing, inhibiting, or reducing fibrosis, the incidence of fibrosis or the progression of fibrosis associated with peritoneal dialysis, during or after peritoneal is administered. More specifically, the methods relates to using intraperitoneal administration of activated protein C (APC) possessing cytoprotective or anti-inflammatory activity, to reduce the incidence or progression of fibrosis associated with peritoneal dialysis. The method is demonstrated using wild type APC and a mutant APC possessing cytoprotective or anti-inflammatory activity but lacking anti-coagulant activity.