Beat butter for 30 seconds. Add granulated sugar and beat until fluffy. Add vanilla and water, beating well. Stir in flour and pecans. Shape into 1-inch balls or 1 1/2 x 1/2 inch fingers. Place on an ungreased cookie sheet. Bake at 325 for about 20 minutes. Cool completely. Gently shake a few cookies at a time in a plastic bag with the powdered sugar.