Dacites dominate the large-volume, explosive eruptions in magmatic arcs, and compositionally similar granodiorites and tonalites constitute the bulk of convergent margin batholiths. Shallow, pre-eruptive storage conditions are well known for many dacitic arc magmas through melt inclusions, Fe–Ti oxides, and experiments, but their potential origins deeper in the crust are not well determined. Accordingly, we report experimental results identifying the P–T–H₂O conditions under which hydrous dacitic liquid may segregate from hornblende (hbl)-gabbroic sources either during crystallization–differentiation or partial melting. Two compositions were investigated: (1) MSH–Yn−1 dacite (SiO₂: 65 wt%) from Mount St. Helens’ voluminous Yn tephra and (2) MSH–Yn−1 + 10% cpx to force saturation with cpx and map a portion of the cpx + melt = hbl peritectic reaction boundary. H₂O-undersaturated (3, 6, and 9 wt% H₂O) piston cylinder experiments were conducted at pressures, temperatures, and fO₂ appropriate for the middle to lower arc crust (400, 700, and 900 MPa, 825–1100 °C, and the Re–ReO₂ buffer ≈ Ni–NiO + 2). Results for MSH–Yn−1 indicate near-liquidus equilibrium with a cpx-free hbl-gabbro residue (hbl, plg, magnetite, ± opx, and ilmeno-hematite) with 6–7 wt% dissolved H₂O, 925 °C, and 700–900 MPa. Opx disappears down-temperature consistent with the reaction opx + melt = hbl. Cpx-added phase relations are similar in that once ~10% cpx crystallizes, multiple saturation is attained with cpx, hbl, and plg, +/− opx, at 6–7 wt% dissolved H₂O, 940 °C, and 700–900 MPa. Plg–hbl–cpx saturated liquids diverge from plg–hbl–opx saturated liquids, consistent with the MSH–Yn−1 dacite marking a liquid composition along a peritectic distributary reaction boundary where hbl appears down-temperature as opx + cpx are consumed. The abundance of saturating phases along this distributary peritectic (liquid + hbl + opx + cpx + plg + oxides) reduces the variance, so liquids are restricted to dacite–granodiorite–tonalite compositions. Higher-K dacites than the Yn would also saturate with biotite, further limiting their compositional diversity. Theoretical evaluation of the energetics of peritectic melting of pargasitic amphiboles indicates that melting and crystallization of amphibole occur abruptly, proximal to amphibole’s high-temperature stability limit, which causes the system to dwell thermally under the conditions that produce dacitic compositions. This process may account for the compositional homogeneity of dacites, granodiorites, and tonalites in arc settings, but their relative mobility compared to rhyolitic/granitic liquids likely accounts for their greater abundance.