A 57th minute winner from Ashley Webster at Glencrutchery Road has taken Peel to the top of the Canada Life Premier League.
It was Champions St. George's first home defeat since 2009.
Ramsey are second following a 1-0 victory over Corinthians and have not conceded a goal in their opening two fixtures.
St. Mary's triumphed 3-1 away to Rushen at Croit Lowey and avoided slipping to a third defeat in four matches.
And there was a first success of the campaign for Gymns on their return to the top flight - they won 4-2 at Laxey to lift themselves off the bottom of the table.
In Combination Two, Douglas Atletic are top following an impressive 5-1 success at Marown.
RESULTS:-
Canada Life Premier League
Laxey 2-4 Gymns
Ramsey 1-0 Corinthians
Rushen 1-3 St. Mary's
St. George's 0-1 Peel
JCK Combination Two
Malew 7-2 Foxdale
Marown 1-5 Douglas Athletic
Onchan 5-1 Castletown
Ramsey Youth Centre 6-3 Pulrose
Rugby: Bevan Rodd on bench for England's opening Six Nations match
MGP 26: A new Quayle set for the start line
Football: Douglas Royal face Peel in Floodlit Cup Final clash
Hockey: Three wins for Island sides in England Championships
Hockey: Bacchas Mens and Valkyrs Ladies among sides to progress from cup first round