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Italian Casserole with Bell Peppers and Meatballs

1 red bell pepper, trimmed and cut in strips 1 green bell pepper, trimmed and cut in strips 1 large onion, cut in 2 and sliced 1 1/2 cup (375 mL) sliced pepperoni 2 tbsp (30 mL) olive oil 1 can (28 oz/796 mL) tomatoes 3 cups (750 mL) water 2 t...