Place butter or margarine in an 8X8 glass baking dish. Place dish in oven until butter is melted.
In a medium bowl, combine flour and sugar. Mix well, then stir in milk. Spoon mixture into baking dish, on top of melted butter or margarine. Pour peaches over flour mixture.
Bake in preheated oven for 50 to 60 minutes, until peaches are bubbly and crust is lightly browned.
