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Put 100ml water, the lemongrass, sugar, lime zest and juice and sugar in a small pan over a medium heat and bring to the boil, stirring to dissolve the sugar. Reduce the heat to low and simmer for 10 minutes, until the liquid has slightly thickened and reduced. Remove from the heat and set aside to cool slightly.
Combine the watermelon, peach, red onion, jalapeño or green chilli and herbs in a large bowl. Add the lemongrass mixture and carefully mix together to combine. Season to taste. Allow to sit for at least 5 minutes to develop the flavour. Serve within 30 minutes. Delicious with grilled meats and fish.
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