Hi Susie !
I do not know why the birds left me the peaches. When the tree was in the ground in a more isolated spot in the yard both the birds and lizards got them. This barrel is right outside the kitchen door so there is more human activity by me there so perhaps the birds are scared off more.
Yes, I use the water from the hose. When the rain barrel is full it will get a treat of rain water mixed with miracle-gro fertilizer. Our water is very hard but tastes good. This year I am saving old panty hose and plan to cut them up and stretch each section over individual peaches for extra protection.