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Place diced bacon in large pot over medium-high heat. Cook until almost crisp; add onions, and cook 5 minutes. Stir in water and po9tatoes, and season with salt and pepper. Bring to a boil and cook uncovered for 15 minutes or until potatoes are fork tender
Pour in half and half, and add butter. Drain clams, reserving clam liquid; stir clams and 1/2 of the clam liquid into the soup. Cook for about 5 minutes or until heated through. Do not allow to boil.
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