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Cook the bacon in a skillet over medium heat until browned and crispy. Scoop out the bacon onto a plate lined with paper towel to drain.
Drain most of the bacon grease, leaving about 3-4 tablespoons in the skillet.
Add the brussels sprouts halves, water, salt and pepper to the skillet. Cover skillet with lid and let them cook for about 6-8 minutes. Check every few minutes and stir, ensuring that the brussels sprouts do not stick to the bottom of the skillet.
Remove the lid, lower heat and continue to cook until the brussels sprouts are tender and nicely browned. This should take another 5 minutes or so and all the water should be evaporated.
Remove from the heat and place the brussels sprouts in a serving bowl. Toss with the cooked bacon and crisp fried onions.