Place the potatoes into a pot and fill with enough water to cover. Bring to a boil and cook for about 10 minutes or until easily pierced with a fork. Drain and set aside to cool.
Place the bacon in a large deep skillet over medium-high heat. Fry until browned and crisp, turning as needed. Remove from the pan and set aside.
Add onion to the bacon grease and cook over medium heat until browned. Add the vinegar, water, sugar, salt, and pepper to the pan. Bring to a boil; then add the potatoes and parsley. Crumble in the bacon. Heat through, then transfer to a serving dish. Serve warm.