Put water and sugar into a medium saucepan. Zest the orange and set aside the zest. Juice the orange and add it to the saucepan (you should get about 1/4 cup of juice from one orange). Bring the water, sugar and juice to a boil. Add cranberries. Return to a boil and then reduce heat to a simmer. The cranberries should have started to pop by now.

Add the orange zest and nutmeg. Smash the cranberries with a wooden spoon until about half of them are smashed and the rest are left whole. Simmer on low heat about 10-15 minutes. Remove from heat and allow to cool to room temperature. It will thicken as it cools.

Refrigerate in an airtight container.