In a large saucepan, combine peaches and water. Bring to boiling; reduce heat. Cover and simmer for 10 to 15 minutes or until peaches are tender. Cool slightly.
Transfer to a blender container. Cover and puree until smooth. Return to saucepan.
Stir in sugar and honey. Bring mixture to boiling; reduce heat. Simmer, uncovered, about 10 minutes or to desired consistency, stirring frequently.
Transfer to freezer containers. Cover, seal, label, and freeze. Makes 2 pints. (Or, spoon mixture into hot, sterilized pint jars, leaving a 1-1/4-inch headspace. Wipe jar rims; adjust lids. Process in boiling-water canner for 5 minutes. Start timing when water begins to boil.)
You can store this spread in the refrigerator for up to 3 weeks or in the freezer for as long as 1 year.