Cut any large baby carrots in half lengthwise. In a 12-inch skillet bring water to boiling. Add carrots and sweet pepper. Reduce heat to medium and cook, covered, about 5 minutes or until nearly tender, stirring once.
Add sugar snap peas. Cook and stir, uncovered, about 3 minutes more or until crisp-tender. Stir in butter, basil, salt, and pepper.