In an 8- to 10-quart heavy pot combine peaches and the water. Bring to boiling; reduce heat. Simmer, covered, 10 to 15 minutes or until peaches are tender. Remove from heat. Cool slightly.
In a blender or food processor puree peach mixture, in batches, until smooth (you should have about 14 cups puree). Return all of the peach puree to the pot. Add sugar and honey. Bring to boiling, stirring until sugar dissolves; reduce heat. Simmer, uncovered, 60 to 70 minutes or until mixture is thick and starts to mound, stirring frequently.
Ladle hot butter into hot, sterilized half-pint canning jars, leaving a 1/4-inch headspace. Wipe jar rims; adjust lids and screw bands.
Process filled jars in a boiling-water canner 5 minutes (start timing when water returns to boiling). Remove jars from canner; cool on wire racks.