Split vanilla bean open with a sharp knife. Scrape out the vanilla bean seeds and pulp. Cut pods in half and combine all of it with the water and sugar in a small saucepan.

Stirring continually, bring it to a gentle simmer over medium low heat. Simmer and stir for 15 minutes. Remove it from the heat. Discard bean pods. Stir in Vanilla extract.

Cool completely. Store in an air-tight container in your refrigerator.