Cook bacon in a large Dutch oven until crisp; remove bacon, reserving drippings for use in another recipe. Crumble bacon, and set aside.
Layer steak and crumbled bacon in Dutch oven. Sprinkle salt and pepper over top. Arrange onions, carrots, and potatoes over steak; add water. Bring mixture to a boil. Reduce heat; cover and simmer 45 minutes.