In a small saucepan, bring water and sugar to a boil, stirring until sugar is dissolved. Remove from heat and let cool.

Using a blender or food processor, purée the watermelon.

In a medium sized bowl, stir in the watermelon, sugar-water and lime juice.

Pour mixture into a 11 x 7 baking dish, cover and freeze for about 4-5 hours.

Remove from freezer, let stand for 10 minutes.

Using a fork, scrape entire mixture until crystals are fluffy. Serve in chilled glasses or bowls.