In a large nonstick skillet cook bacon over medium heat for 5 minutes or until cooked through, stirring occasionally. Remove bacon from skillet and set aside. Add cabbage, sweet pepper, onion, and the water to skillet. Cover and cook over medium heat for 5 minutes or until vegetables are just tender, stirring occasionally.
In a small bowl combine mayonnaise, mustard, vinegar, caraway seeds, and celery seeds. Add to cabbage mixture in skillet. Toss until well coated. Sprinkle with cooked bacon and serve warm.