1. Preheat oven to 375°F. Grease a 3-quart rectangular baking dish. Layer half of the potatoes in dish.
2. Stir together soup, butter, garlic and pepper. Stir in water. Spoon about half of the soup mixture over the potatoes. Sprinkle with half of the cheese and half of the bacon. Repeat layers of potatoes, cheese and bacon.
3. Cover with foil and bake for 45 to 50 minutes or until potatoes are tender.