Peel potatoes.

Slice potatoes.

Dice bacon.

Chop onion.

Fry bacon until crisp in a pan.

Add chopped onion to the pan with the bacon and cook for 1 minute.

In the pan, blend flour, salt, sugar, and pepper with the bacon and onion mixture.

Stir in vinegar and water to the pan.

Cook for 10 minutes, stirring occasionally, until the mixture thickens.

Pour the bacon-vinegar mixture over the sliced warm potatoes.

Serve warm.