Combine water and dried lentils in a medium saucepan, and bring to a boil. Cover, reduce heat, and simmer 40 minutes or until tender.
Heat olive oil in a small skillet over medium heat. Add shallots and garlic; cook 2 minutes or until shallots are tender, stirring occasionally. Place lentils in a large bowl; mash to desired consistency. Add the shallot mixture, tomato, onions, basil, and salt; stir to combine. Cool to room temperature.