Bring peaches and 1/2 cup water to a simmer in a medium saucepan over medium heat. Reduce heat to medium-low, and cook until peaches are breaking down, 15 to 20 minutes. (If peaches get too dry, add more water, 2 tablespoons at a time, to prevent peaches from sticking and burning.)
Remove from heat, and add bourbon. Return to medium heat, and simmer for 5 minutes. Add barbecue sauce, and simmer for 5 more minutes.
Puree mixture in a blender. With blender running, slowly add remaining 1/2 cup water. Blend until mixture is smooth. Let cool, and refrigerate.
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