To a pot, add the water, vinegar and sugar. Bring to a simmer and stir until the sugar and salt are dissolved. Simmer the mixture for 8-10 minutes.

In a food processor, add the chilies and garlic. Pulse until they are finely chopped.

Add the chilies and garlic to the pot and bring to a slow simmer. Cook until the mixture just becomes syrupy. It will thicken as it cools down. If you reduce it down to much, thin out with a little water and check for seasoning. The sauce will keep in your refrigerator for about 2 months.