Pancreatic progenitor cells (PPCs), which are multipotent cells that have the potential to give rise to endocrine, exocrine and epithelial cells, provide a powerful model system to examine the molecular characteristics of differentiating, fetal-like pancreas cells and to study the genetics of pancreatic disease. We differentiated ten induced pluripotent stem cell-derived pancreatic progenitor cell (iPSC-PPC) lines and, using single cell RNA-seq and single nuclear ATAC-seq, we found that they show varying levels of cellular maturity, including the presence of early PPC, endocrine and exocrine cells. We evaluated iPSC-PPC as a model system to study type 2 diabetes (T2D) and found that, of 380 T2D risk loci, 208 overlapped regulatory elements active in iPSC-PPC, including 55 fetal-specific. These loci are associated with transcription factor binding site alterations and allele-specific expression, suggesting that iPSC-PPC are an optimal model system to annotate GWAS variants that are not functional in the adult pancreas.