Place sugar in a clean dry saucepan. Pour the water around the wall of the pan to avoid any splashing of sugar crystals onto the sides of the pan. Bring to a boil and continue cooking on high until amber colored. Turn heat off and with a wooden spoon, stir in the butter and then the cream. Pour into an 8 by 8-inch pan that has been lined with foil and well-buttered and let the caramel cool and set until firm. Once firm, cut into squares. Wrap in decorative clear plastic. Store at room temperature.