In a large pan bring water and basil to a boil. Remove from heat cover and let steep for 10 minutes. Strain and discard basil. Return 3 2/3 cups liquid to pan. Stir in pectin and food coloring. Return to a boil. stir in sugar and boil for 2 minutes stirring constantly.
Remove from heat skim off foam and ladle into jars. Process in water bath 15 min.