Wash cranberries and remove any wayward stems and mushy, brown/bruised berries.
In a medium saucepan, heat water and sugar over low heat until sugar dissolves. Add cranberries, increase heat, and bring to a boil. Turn down heat to low and simmer cranberries until most of them have cracked or burst, about 10 minutes.
Remove from heat and allow to cool completely. Cranberry sauce "gels" more as it cools.
Serve room temperature or chilled.