German Potato Salad

4 slices bacon, cut in 1" pieces
1 med onion
2 Tbsp flour
1/4 cup sugar
1/4 cup vinegar
4 - 6 potatoes, boiled & sliced
Salt & pepper to taste
1 cup water

Fry bacon until crisp. Remove & cook onion. Stir flour, sugar, vinegar, water, salt & pepper into onion and stir to make a smooth sauce. Add potatoes & bacon and keep warm to serve.