Cook bacon in a large skillet over medium-high heat until crisp; remove bacon from skillet, reserving drippings in skillet. Set bacon aside.
Cook cabbage in drippings over medium-high heat 6 minutes or until browned, stirring frequently. Add sugar, vinegar, water, salt, and celery seeds, and cook 1 minute, stirring constantly. Remove from heat; crumble bacon, and stir into cabbage mixture. Serve warm.