Boil potatoes with peeling on until tender.

Fry bacon until crispy, then remove and set aside, reserving the drippings.

Remove peeling from potatoes and slice into bite-sized pieces.

Season sliced potatoes with salt and pepper to taste.

Chop onion into small pieces.

Crumble the fried bacon.

Add chopped onion, crumbled bacon, flour, vinegar, and water to the reserved bacon drippings in a saucepan.

Cook the mixture over medium heat, stirring constantly, until it thickens and becomes clear.

Gently stir the sliced potatoes into the thickened sauce.

Mix well to ensure the potatoes are evenly coated with the dressing.

Refrigerate for at least 4 hours, or preferably overnight, to allow the flavors to meld.

When ready to serve, transfer the potato salad to a 9 x 13-inch baking pan.

Heat in the oven until warmed through.