Spread about 24 hot coals in a flat layer under the dutch oven. Combine butter and water in the pot and bring to a boil. Add the sausage, bell peppers, pineapple, rice, seasoning from packet and pineapple preserves. Stir well and cover pot with lid.
Rearrange 10 of the hot coals in a ring under the dutch oven and move the remaining hot coals to the lid. Cook 40-45 minutes, rotating pot and lid every 15 minutes and stirring twice; let coals burn down before replenishing. Remove from heat and let rest for 10 minutes before serving.