Preheat oven to 350°F.

Cut bacon slices into thirds.

Wrap each water chestnut with 1/3 slice of bacon and secure with a wooden toothpick. Place wrapped chestnuts in pan and bake for 25 minutes or until bacon is crisp.

When bacon is crisp, remove chestnuts from pan and drain on paper towels. Set aside.

Combine ketchup and brown sugar in a sauce pan. Bring to a light boil stirring often. Simmer for a few minutes and remove from heat.

Dip cooked wrapped chestnuts in ketchup sauce and place back in baking pan. Drizzle the remaining sauce over the chestnuts and bake an additional 10-15 minutes.

Remove from oven, allow to cool for a few minutes and enjoy.