Sprinkle with green onions. Pour water over potatoes and onions.
Arrange bacon slices on top and sprinkle with pepper.
Cover with foil and bake in pre-heated Dutch oven for 40 minutes. Add potatoes and heat to boiling. Reduce heat to simmer. Cover and cook 20-25 minutes. Cook and stir margarine, sugar, and salt in large skillet over medium heat until mixture starts to turn golden brown.