Layer half the potatoes and half the onions in a small slow cooker. (I used my 6-quart and it turned out great).
Repeat with the remaining potatoes and onions. Add the water. Cook on LOW for 5-6 hours.
Remove the potatoes and onions on to a plate using a slotted spoon.
Slice the bacon into 1-inch pieces. Brown them in a skillet on the stove-top. Drain on a paper towel.
Mix the vinegar, sugar, celery seed, salt and flour in a small bowl, mix until there is no lumps. Add this to the slow cooker, stir until this mixture thickens. Let cook on HIGH for 5 minutes.
Add the potatoes and onion back to the crock pot in to the vinegar mixture, also add the bacon at this time. Gently stir this together.
Turn to low and cook for an additional 30 minutes.
Top with chives if desired.
Notes
Can I use a different type of potato?Yes, russet or yukon gold will work great with this recipe.Can I use turkey bacon?Turkey bacon will taste great along with these potatoes and dressing.