COOK bacon and red pepper in large saucepan on medium heat until bacon is crisp, stirring occasionally. Drain, reserving 1 Tbsp. of the drippings in saucepan.
ADD peas, water and salt to saucepan. Bring to boil. Reduce heat to low. Simmer, partially covered, 1 hour or until peas are tender, stirring occasionally.
REMOVE 2 cups of the peas and liquid from saucepan. Place in blender container with flour; cover. Blend until pureed. Stir puree back into peas in saucepan; simmer until slightly thickened, stirring occasionally.