Heat a large skillet over medium-high heat. Cook and stir beef in the hot skillet until browned and crumbly, 5 to 7 minutes; drain and discard grease. Add water, tomato paste, pickle relish, onion, Worcestershire sauce, mustard, chili powder, salt, and sugar; bring to a boil. Reduce heat to medium-low and simmer, stirring occasionally, until sauce is thickened, about 30 minutes.