Toss crumbs with melted butter. Toss peaches with mixture of water, lemon juice, lemon peel, and sugar. In a greased baking dish, alternate layers of bread crumbs and peaches, starting and ending with a layer of crumbs.
Cover and bake at 325° for 55 to 65 minutes. Serve with whipped cream or vanilla ice cream.
Peach Betty recipe serves 12.