In large skillet, add tomato sauce, water, salt and pepper, Italian seasonings, celery salt, sugar, chilli powder and garlic powder. Cook over medium heat while preparing meatballs. Turn heat down when sauce starts to cook.
To make meatballs, combine all meatball ingredients in a bowl. Form into walnut-sized meatballs. Place into tomato sauce, cover and cook for about 1/2 hour on medium heat.
Watch to make sure sauce doesn't get too thick or start to stick to pan. If it does, add a touch more water.