Preheat oven to 350 degrees.
Cut each strip of bacon in half. Wrap one strip around one water chestnut and secure with a wooden toothpick. Place in shallow baking dish.
Bake in preheated oven for 20 minutes.
While wraps are baking, in a small bowl, combine brown sugar, mayonnaise and chili sauce to make a barbecue sauce. After wraps have finished baking, transfer them (removing from the grease) to a second shallow baking dish. Pour barbecue sauce over the wraps.
Return to oven and bake an additional 10-15 minutes, or until bacon is crispy. Serve hot out of dish. Makes 16 servings. Enjoy!