Place peach slices and peppers in the bowl of a food processor and pulse until peaches reach your desired consistency (depends on if you like big chunks or little chunks of peaches in your jam).
Combine mixture with lemon juice, water, and pectin in a large medium saucepan. Bring mixture to a hard rolling boil.
Stir in sugar. Return to a boil and continue to boil for 1-2 minutes, stirring frequently, until jam reaches desired consistency. (I like to spoon a little out into a cold glass bowl to see if it is thick enough).
Remove pan from heat. Skim foam if desired.
Ladle hot jam into hot jars leaving ¼ inch headspace*.
Wipe the rim of the jar with a clean, damp rag. Center the lid on jar. Carefully screw on the band until fit is fingertip tight.
Process jars using the water bath method for 10 minutes. Remove jars and allow to cool. Once the jars cool, the vacuum seal will form and you will hear the lids “ping” once the seal is complete. Check the lids after 24 hours to make sure the lids do not flex up and down when the center is pressed. Store any jars that do no seal in the refrigerator.