In a medium saucepan combine fresh peaches, 1 cup water and sugar. Cook over medium-high heat until boiling. Reduce heat to low and simmer for 5 minutes. Let cool.
Place in blender and blend for about 1 minute until smooth. Using a sieve over a 2 qt pitcher, pour peach syrup through sieve. Add fresh lemon juice. Fill to 2 qt line with ice and water. Enjoy!