Pre-heat oven to 350°F.
Cut turkey bacon in half, lengthwise.
Cut water chestnuts in half.
Wrap turkey bacon around water chestnut and secure with a wooden toothpick.
Place wrapped chestnuts in an ungreased baking dish, place about ¼-inch apart.
In a small bowl, mix ketchup and sugar; blend well.
Pour over wrapped chestnuts; try to avoid getting too much on toothpick.
Cover with aluminum foil and bake for 45 minutes.
Remove foil and place under broiler for 2 minutes.
Remove from heat; place a fancy doily (to absorb excess grease) on a serving platter; place hors d’oeuvres on platter; allow to cool a little prior to serving.
