Line a baking sheet with parchment paper; spray with non-stick vegetable spray.
Combine sugar, fennel seeds, crushed red pepper and salt. Add nuts and water. Stir to evenly coat. Spread on prepared baking sheet in a single layer.
Bake at 325°F for 15 minutes, stirring frequently until nuts are a deep golden brown. Cool. Separate nuts with a fork.
Note: Reduce salt to 1 teaspoon if using lightly salted nuts.