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Boil potatoes and drain, set aside to cool.
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Fry bacon, reserve 4 Tbsp of the drippings.
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Fry diced onion in drippings until soft.
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Stir into the dripping the flour and stir well until brown.
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Add to browned mixture your water, vinegar and sugar.
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Stir fast so it does not lump up on you. It should get bubbly and thicken up.
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Pour hot mixture over potatoes. Add crumbled cooled bacon. stir in celery seed and salt and pepper.
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You can add sliced up green onions on top if you would like.
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The sauce is easily doubled if you like it saucier.
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* I use splenda instead of sugar and it works great.