Skinny Tomato Sauce

1 med onion, finely chopped
1 garlic clove, minced
 2 T water
1 (32 oz) can crushed tomatoes w/ Italian herbs, or add 1 T Italian seasoning
1 T olive oil
 2 t sugar
1/4 t salt
1/4 t pepper
1 bay leaf

In saucepan combine onion, garlic and water.  Bring to boil over high heat.  Reduce heat to low, cover and cook 10 minutes or until onion is tender and translucent, stir and add water as needed.  Add remaining ingredients.  Increase to medium high and bring to boil.  Reduce heat, cover and simmer 10 minutes.  Discard bay leaf.