In a medium bowl, cream together the butter and sugar until smooth. Beat in the water and vanilla. Stir in the flour and pecans until well blended. Cover dough and chill for at least four hours.
Preheat oven to 325 degrees F (165 degrees C). Shape dough into walnut sized balls or crescents. Place 2 inches apart onto unprepared cookie sheets.
Bake for 18 to 20 minutes in the preheated oven, until golden. Roll in confectioners' sugar while still warm.
