Cream butter in a large mixing bowl; gradually add sugar, beating well. Stir in peanut butter and water. Shape mixture into 1/2-inch balls. Place on waxed paper-lined baking sheets; set aside.
Place chocolate in top of a double boiler; cook over simmering water, until chocolate melts, stirring well.
Fill paper candy liners one third full with melted chocolate. Press a peanut butter ball in the center of each liner. Cover top of peanut butter with remaining melted chocolate. Let cool. Store in airtight containers in refrigerator.