Line two large baking sheets with parchment paper, or well greased waxed paper. Set aside.
In a large, heavy saucepan, combine the caramels and water; cook and stir over medium low heat until smooth. Stir in toasted pecans and Rice Krispies until well coated. Drop by teaspoonfuls onto prepared pans.
Meanwhile, melt the chocolate candy coating in a double boiler over simmering water, making sure that the bottom of the pan with chocolate does not touch the water. Be careful not to boil the water. Dip each piece of candy into the chocolate, coating all sides. Place on prepared pans. When fully set, store in airtight container. Yield: 3 to 4 dozen, depending on size of each piece.
*May use 3 cups of semi-sweet chocolate chips melted with 1½ teaspoons of shortening in place of the chocolate candy coating.