Wash and dry the apples and put a stick into the stem of each. In a saucepan over low heat, melt the caramels  in water. Stir until the caramels, become  a smooth sauce. Holding the apples by the sticks, dip them into the caramel sauce, turning them around to coat evenly. Scrape excess caramel from bottom of apples. Place the apples on greased cookie sheet and chill in refrigerator until caramel is firm and the apples are chilled.