RINSE clean plastic containers and lids with boiling water. Dry thoroughly.
CRUSH raspberries thoroughly, one layer at a time. (Press half of pulp through a sieve to remove some of the seeds, if desired.) Measure exactly 2 cups prepared raspberries into large bowl. Peel and pit peaches; finely chop or grind the fruit. Measure exactly 1-1/2 cups prepared peaches into bowl with the raspberries. Stir in sugar. Let stand 10 minutes, stirring occasionally.
MIX water and pectin in small saucepan. Bring to boil on high heat, stirring constantly. Boil and stir 1 minute. Add to fruit mixture; stir 3 minutes or until sugar is dissolved and no longer grainy. (A few sugar crystals may remain.)
FILL all containers immediately to within 1/2 inch of tops. Wipe off top edges of containers; immediately cover with lids. Let stand at room temperature 24 hours. Jam is now ready to use. Store in refrigerator up to 3 weeks or freeze extra containers up to 1 year. Thaw in refrigerator before using.