If the peat is entering the water, then you will likely have a very "green", "mossy", or "rotting vegetable" taste, as peat is decayed wood and plant matter. Aside from the Islay malts, I don't really see the master distillers favoring such a flavor in their product.
Still, it's an interesting thought.
"Suppose he's got a pointed stick!?!"
- Eric Idle, Monty Python's Flying Circus