1. Preheat oven to 325.
2. in large bowl combine meat, crumbs, egg, water, half onion, 1/4 tsp salt and pepper and mix well.
3. form into 1 inch meatballs. place ina 13 x 9 inch baking pan.
4. in another bowl combine remaining ingredients. pour over meatballs.
5. bake for 50-60 minutes or until sauce is bubbling and balls are cooked thru