Grandma Frances' Wisconsin German Potato Salad

Grandma Frances' Wisconsin German Potato Salad was pinched from <a href="http://www.recipelion.com/Potato-Salad/Grandma-Frances-Wisconsin-German-Potato-Salad" target="_blank">www.recipelion.com.</a>
INGREDIENTS
3 pounds about 6 medium, red salad potatoes
1/2 cup sliced white nion (a sweet yellow onion may be substituted.)
2 tablespoons flour
3 tablespoons sugar
1 1/2 teaspoons salt
1/2 teaspoon celery seed
1/8 teaspoon pepper
3/4 cup water
1/3 cup vinegar
6 (to 8) slices bacon cut into 1 inch pieces (I prefer the Patrick Cudahy Thick Sliced, Double Smoked style in the black labeled box).
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