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1. In a small saucepan combine 2 cups of the water and the finely chopped ginger. Bring to boiling; reduce heat. Boil gently, uncovered, for 3 minutes. Remove from heat; stir in lime peel. Cover and let stand for 15 minutes. Strain into a pitcher; discard solids.
2. Add brown sugar and honey to ginger liquid in pitcher, stirring to dissolve sugar. Stir in lime juice, jalapeno pepper (if desired), and the remaining 1 cup water. Cover and chill for at least 2 hours (up to 3 days).
3. Before serving, add the reserved squeezed lime halves to pitcher. Slowly pour sparkling water into ginger liquid in pitcher; stir gently to mix. Serve in brown sugar-rimmed glasses*** over ice cubes. Garnish with lime wedges and ginger slices.