In large pot combine peaches and water. Bring to a boil, reduce heat and simmer covered for 10-15 minutes. Or until peaches are tender. Remove from heat. Cool slightly.
Use a blender or processer to purée peaches in batches, until smooth. Return pureed peaches to pot, add sugar and honey. Bring to a boil, stirring until sugar is dissolved. Reduce heat, simmer uncovered, stiring often. Cook for about 10 minutes or until mixture is thick and mounds on spoon.
Ladle into hot sterlized 8 oz jars, leaving 1/4" headspace. Wipe rims and add lids.
Process jars in water bath for your recommend altitude.