In a small saucepan, bring 1/2 cup sugar, 1/2 cup water, and 3 wide strips orange zest to a boil over high heat. Reduce to a simmer and cook until sugar dissolves, 3 minutes. Let syrup cool in a bowl. In a blender, puree 12 oz watermelon cubes (about 2 cups) until smooth. Strain through a fine-mesh sieve, pressing on solids, into a pitcher (should be about 1 cup juice). Stir in syrup, 1/4 cup fresh lime juice (from about 3 limes), and 3/4 cup white or silver tequila. Fill salt-rimmed glasses with ice, then pour margarita mixture over top. Garnish with lime wedges.
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