Using a vegetable peeler, carefully remove rind from grapefruit; discard bitter white pith. Cut rind into julienne strips. Peel and section grapefruit; set sections aside.
Combine grapefruit rind, sections, and water in a large saucepan; bring to a boil. Reduce heat to medium, and simmer 15 minutes, stirring occasionally. Add cranberries, and cook 10 minutes. Stir in sugar; cook 30 minutes or until slightly thickened, stirring occasionally. Pour into decorative jars or airtight containers. Store in refrigerator for up to 3 weeks.
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