Peel came from 2-0 down at half-time to beat Old Boys 3-2 in a great match at Douglas Road.
A 92nd minute cracker from Terry Rigeaux gave the westerners all three points, and put them two clear of Rushen, who left it extremely late to snatch a point away to reigning champions St George's.
Brothers Callum and Craig Stewart put Old Boys in the driving seat at Peel, but goals from Kerron Christian and Lee Gale made sure the teams were level at 2-2 as the game moved into injury time.
Rigeaux's dramatic winner enabled the westerners to put some daylight between themselves and Rushen, with whom they had been level before Saturday's games.
St George's must have thought they had given themselves something to cheer in what has been a disappointing season, when they were still 1-0 up at home to Rushen four minutes into stoppage time at the end of the match.
Danny McMahon had given them the lead in the first half, and Callum Morrissey had just missed a golden chance to wrap up the points when he blasted over the bar.
Unfortunately Chris Shimmin had other ideas, and his 95 minute equaliser meant in finished all square.
And it could have been even worse for St George's, as Josh Kelly failed to convert a chance which would have given Rushen all three points in the 97th minute!
At the other end of the table, Michael United made in two wins on the bounce, after losing their first nine games of the season.
This time it was a 3-1 success at St John's, with two goals from Chris Blackburn and one from Matty Brand. It was 1-0 to Michael at half-time, and Mark Wolveton replied for the home side.
Michael are now six points ahead of bottom of the table Union Mills, and their next target will be to overhaul St John's, who are a point ahead of them, just outside the relegation places.
In the only other Premier League game to escape the weather, Ramsey won 3-1 at home to Corinthians. The scorers for the northen side were Steven Cleator from the penalty spot and Paul Hawley, with a brace. Ramsey led 1-0 at half-time, and Lee Sum replied for Corinthians.
The other scheduled matches, Gymns v Laxey and St Mary's v Castletown, were postponed.
Bottom of the table Union Mills, who have yet to register a point, had what would have been a welcome week off.
Marown retained their two point advantage at the top of Division 2, thanks to a 5-3 home win over Foxdale. The led 3-0 after 45 minutes and their scorers were Kevin Druggan (2), Danny Jones, Mike Wheeler and Jeremy Lovett.
Ayre United stayed in contention in second place with a 5-1 victory at Malew. The goals for the away side came from Matty Montgomery (2), Phil Quayle and James Teare. An own goal completed the scoring.