1. In a Dutch oven, over medium heat, cook sausage, onion and garlic in oil until onions are tender.
2. Add green pepper, mushrooms, salt and seasoning; continue to cook for 4 minutes.
3. Stir in tomatoes, water and basil.
4. Simmer, uncovered, for 20-25 minutes.
5. Add prepared spaghetti to sauce; toss to coat evenly.
6. Spoon one-half of the pasta mixture into a greased 2-½ quart baking dish.
7. Sprinkle with one-half of the cheese. Top with remaining pasta mixture and cheese.
8. Bake, covered, at 375°F for 20-25 minutes.
9. Remove cover, bake 5 minutes longer. Serve.