Coat chicken with flour. In 10" skillet over medium heat, in hot oil, brown chicken on both sides (about 10 minutes). Remove chicken; spoon off any drippings.
To skillet, add water, wine, soup mix and mushrooms. Stir well; heat to boiling. Return chicken to skillet. Reduce heat to low. Cover and simmer for 25 minutes.
Add pepper strips. Cover and simmer 10 minutes or until chicken is fork tender. Remove chicken to platter;keep warm. Cook gravy until thickened, about 5 minutes, stirring occasionally. Spoon over chicken.
(I thickened the gravy with a little flour/water mixture and I also added the bell pepper when I added the mushrooms, because I like for them to be well cooked.)