In a large and deep sauce pan over medium heat add the butter and Sauté the onion with the garlic and after a minute add the mustard and stir for a minute more.
Add the water, tomatoes, peaches and chili pepper and bring to a boil.
Bring to a simmer on low heat and allow the liquid/water to evaporate by half.
Toss in the rest of the ingredients and let them simmer for an hour or so with the lid on the saucepan.
Let the sauce cool and then place it in sterilized glass jars.