Preheat oven to 375 degree F.
Combine water chestnuts (whole or halved), soy sauce and sugar.
Marinate about 30 minutes.
Cut bacon slices into thirds; wrap around water chestnuts, fastening with toothpicks.
Arrange on broiler pan or on rack in shallow baking pan.
Bake 20 to 25 minutes until bacon is crisp.