Peel overturned a 2-1 half time defect to close the gap to Corinthians to just two points.
The westerners have two games in hand over the whites and the destiny of the title is in their hands.
Peel had Tommy Brown (2) Jason Charmer (2) and Scott Horne to thank for their win which means they could go top in midweek if results go their way.
At the bottom of the league, Old Boys’ continued on their journey back to Div2 losing 7-3 away at St Johns thanks to four Callum Tagart goals, two from Dean Leece and another from Joe Quayle.
In the battle of third versus fourth, Laxey beat Onchan thanks to a goal from Ed Kangah in a game described by Dean Turton as “properly dire”.
The other results saw Braddan moved further away from the bottom two with a 1-4 win away at Ayre, Ramsey beat bottom side Foxdale 4-2 and Union Mills win 0-2 at Rushen.
Division 2
Castletown’s promotion charge looks over as they fell 0-3 at home to RYCOB on Saturday thanks to goals from Brodie Culshaw and Dylan Parish.
Town head to Marown in midweek and will need a win if they are to maintain any chance of going up.
Above them, Colby continued their title procession beating Malew 3-0 with goals from James Galloway and a brace from Seb Spiers.
The other results saw Pulrose beat Governors 8-2 and St Georges put five past D&D to win 5-1.