Preheat oven to 350 degrees. Using a stand mixer or electric hand mixer, cream the butter and the sugars. Add the vanilla, water and egg. Mix and scrape the sides of the bowl.
In a small bowl combine the baking soda and flour. Gradually add to the wet mixture. Mix until combined.
Add the pretzel pieces and chips. Mix together using a spatula. Spoon the mixture onto a small ball and press together with your fingers into a cookie shape put on a baking sheet that has been lined with parchment paper or sprayed with cooking spray.
Bake at 350 degrees for 11-14 minutes or until lightly golden brown. Remove from baking sheet and cool completely on a wire rack. Store covered on counter.