Peace Water is a traditional hoodoo forumula. It consists of three separate layers of blue "waters" (although obviously all of the layers cannot be water). Peace Water is typically a heavily-guarded proprietary formula kept secret by the rootworker. Many recipes have Sandalwood essential oil as an ingredient. It is a very complex brew for the master crafter (or competent crafter).
Holy water and Florida Water have similar effect; so does burning Sandalwood as an incense. Rosemary, Angelica, Benzoin, and Marjoram are also good sachet herbs.
Peace Water falls under the "Peaceful Home" category of folk magic (American), and if you did a search using those terms (Peaceful Home Spells/Magic), i'm sure you'd get some good sugestions.
But if you want to incorporate Peace Water into your household, i'd suggest buying it.
There's lots of other ways to get rid of bad energy in a room. Peace Water is more for keeping family members happy and together and clearing out yuckiness from arguments and other domestic distruptions.