Melt butter in a large pot over medium heat. Cook and stir onion until softened, about 5 minutes. Stir in cream of potato soup, frozen corn, cream-style corn, milk, crab sticks, water, chicken bouillon, salt, and pepper. Bring to a boil; reduce heat and simmer chowder until flavors combine, about 20 minutes.
Stir green chile peppers into the chowder before serving.