Two ways of looking at it. Just depends on fishery rules.
1. You have half way between you and the next angler.
2. You have to the next peg.
Personally i think to the next peg.
A slightly different scenario.
A pool is 30m wide, there is an island in the middle that is two metres wide. one side is 16m to the island and the other is 12m to the island.
Using the usual ruling that you can only fish half way across the pool that means the angler on the wider side must not fish any closer than 1m to the island..
Food for thought perhaps.....
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