Potato:Cut up potatoes into pieces roughly 3/4 of an inch sliced /cubed .Boil until almost tender. Drain well.
Sauce: In a large skillet, Fry bacon until crisp; remove and drain. Cook & stir in onion in bacon drippings until tender and golden. Stir in flour, sugar, salt, celery seed,and pepper. Cook over low heat until bubbly, Remove from heat and add vinegar and water. Heat to boiling. stirring constantly.
Mix Bacon, Sauce, and Potatoes.
Sauce will absorb into potatoes if it not served immediately.