Preheat oven to 350 degrees.
Mix the first seven ingredients together and form into 12 – 16 meatballs, about golf ball size.
Place meatballs into a greased 9" X 9" or 2-quart baking dish. It's okay if they touch each other or you need to put a few on top of each other.
Mix the water and soup together, and pour over and around the meatballs. The meatballs should be nearly covered, and you can add a little more water if necessary.
Cover and bake for 45 minutes. Meatballs should be cooked through, and rice will be soft and sticking out like porcupine quills. Uncover and baste meatballs with tomato sauce mixture. Continue to cook uncovered for 15 to 20 minutes until meatballs are browned and done.
