Rinse clean plastic containers and lids with boiling water. Dry thoroughly.
Stem and crush blueberries thoroughly; measure exactly 2 cups into large bowl. Peel, pit and finely chop peaches. Measure exactly 1 cup peaches into bowl with blueberries; mix well. Stir in lemon juice, then sugar.
Let stand 10 min., stirring occasionally.
Mix water and pectin in small saucepan. Bring to boil on high heat, stirring constantly. Boil 1 min., stirring constantly.
Add to fruit mixture; stir 3 min. 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 in freezer up to 1 year. Thaw in refrigerator before using.
