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In a large saucepan, cook bacon until crisp. Remove bacon, crumble and set aside to use as topping for peas. Saute onion in bacon drippings until tender. Add peas, diced tomatoes and green chilies, salt, chili powder, pepper and water. Cook, covered, over medium heat for 45 minutes to 1 hour, or until peas are tender. Add additional water of necessary.
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