With sharp, knife gently scrape white membrane from peel.
Cut peel lengthwise into thin strips.
In small saucepan, bring water and 1/2 cup sugar to boiling; stir until sugar is dissolved.
Add peel; simmer over medium heat 5 minutes, stirring frequently.
Turn peel into a strainer; drain thoroughly.
Cool on waxed paper.
Roll peel in 1/2 cup sugar.