Bring water and sugar to a boil in a medium saucpan over medium heat. Add remaining ingredients; return to a boil. Reduce heat and simmer 15 minutes or until the apples are tender. Pour is a glass mixing bowl.
Place a piece of plastic wrap directly on chutney. Cool to room temperature; then refrigerate overnight, covered with plastic wrap, so flavors blend. Serve at room temperature directly on bagels or over a layer of cream cheese.