Wash and place meat in earthenware casserole or roaster; cover with onions. Add bay leaf, garlic, pepper and salt. Mix water and wine; pour over meat. Place diced bacon on top of meat. Place uncovered casserole in 400 degrees F oven for 2 hours. Turn several times, continue to roast at 325 degrees F until meat is very tender and brown. Small potatoes boiled, browned in butter, then garnished with parsley and other vegetables are served along with the Portuguese Alcatra.