The maximal supergravity theory in three dimensions, which has local SO(16) and rigid $E_8$ symmetries, is discussed in a superspace setting starting from an off-shell superconformal structure. The on-shell theory is obtained by imposing further cons
traints. It is essentially a non-linear sigma model that induces a Poincare supergeometry that is described in detail. The possible $p$-form field strengths, for $p=2,3,4$, are explicitly constructed using supersymmetry and $E_8$. The gauged theory is also discussed.
