Fry bacon until crispy. Remove from pan and set aside. Add sugar, vinegar and water to the hot bacon grease in the frying pan. Cook over low heat, scrapping bottom of pan to loosen browned bacon bits. While heating through, crumble bacon.
Shred lettuce into a bowl. When dressing is heated through, pour over lettuce, stirring to evenly coat and wilt lettuce. Garnish with crumbled bacon and serve immediately.