Combine all ingredients in a Dutch oven. Bring to a simmer, over medium-low heat, cover, and cook for 1 hour, stirring a couple times.
Combine water and beer in a large pot. Bring to a simmer over medium heat. Slip in sausages and cook 15 to 20 minutes.
Heat oil in a large nonstick skillet over high heat. When oil is hot, add pepper slices, sprinkle generously with salt, and saute until wilted and lightly colored, about 8 minutes, stirring often.
Serve kielbasas with the kraut and peppers.
Recipe courtesy of Dave Lieberman