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Peel and cut up potatoes and boil until done.
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Drain potatoes and add onion.
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In a small pan fry bacon, DO NOT DRAIN.
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In a heavy saucepan mix flour and sugar.
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To the sauce pan add the water and vinegar (whisk while pouring).
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Boil mixture until clear , should be approximately 5-10 minutes.
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Add bacon and drippings to the clear mixture. Stir until well combined.
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Pour warm mixture over potatoes and add salt, pepper, and celery seed to taste.
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Serve warm.
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*This is how my mom use to make it.I like it a little sweeter so I use scant amounts of salt and almost 2 cups of sugar. You can also keep this warm in a crockpot for potluck dinners.*.