In a large skillet over medium heat, add the ground beef. Cook it until browned, about 5-7 minutes, breaking it apart with a spatula as it cooks.
Once the beef is browned, add the diced bell peppers and onions to the skillet. Sauté for about 3-4 minutes until the vegetables soften.
Sprinkle in the taco seasoning and stir to coat the beef and vegetables evenly.
Pour in the drained diced tomatoes and water. Stir everything together and let it simmer for about 5 minutes.
Sprinkle the shredded cheddar cheese over the top, cover, and let it cook for an additional 2-3 minutes until the cheese is melted.
Remove from heat, and serve hot with your choice of toppings.
