Squeeze juice from oranges; reserve peel from 1 orange.
Scrape white membrane from reserved peel; cut peel into strips.
Add water to juice to make 2 cups.
In saucepan combine orange juice, orange peel, and sugar.
Bring mixture to boiling; reduce heat and simmer over low heat for 5 minutes.
Pour into 1/2 gallon screw-top jar.
Stir in vodka or rum.
Cover with lid.
Let stand at room temperature for 3 to 4 weeks.
Strain through cheesecloth before serving.