Preheat oven to 400F. Spray 13- x 9-inch baking dish with cooking spray; set aside.
Combine tomato sauce, 1 cup water and the chili powder in medium saucepan. Bring to a boil over medium-high heat. Reduce heat to low; simmer 10 minutes, stirring occasionally. Meanwhile, mix chicken, onions and remaining 1 tablespoon water in large nonstick skillet. Cook over medium-high heat 3 to 4 minutes, or until onions are tender, stirring occasionally.
Wrap tortillas in damp paper towels; place on microwavable plate. Microwave on HIGH 1 minute, or until tortillas are warmed and softened. Top each tortilla with 2 tablespoons cheese and about 1/4 cup of the chicken mixture; roll up. Place, seam-sides down, in prepared baking dish. Cover evenly with the tomato sauce mixture; sprinkle with remaining 1-1/2 cups cheese. Cover with aluminum foil.
Bake 30 minutes, or until cheese is melted and sauce is bubbling.
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