In a larger pot combine peaches and the water.

Bring to a boil and reduce heat. Cover and simmer for 10 - 15 minutes or until peaches are tender. Remove from heat and cool slightly.

Use a blender or food processor to puree the peach mixture, in batches, until smooth.

Return peach puree to the same pot.

Add sugar, honey, vanilla bean seeds, and an empty vanilla pod. Bring to boil, stirring until sugar dissolves.

Reduce heat and simmer uncovered for about 60 minutes or until the mixture is thick and mounds on a spoon, stirring often.

Take out vanilla pods.

Ladle hot peach butter into hot, sterilized half-pint canning jars, leaving a 1/4 inch headspace.

Wipe jar rims, and adjust lids.

Process filled jars in a boiling water canner for 5 minutes. Make sure to start timing when water returns to boiling.

Remove jars from the canner, and cool on wire racks.