Place the potatoes in a large saucepan. Add water to cover. Bring to a boil.
Reduce the heat and simmer uncovered for about 12 to 15 minute or just until tender
Add the onion and celery and continue cooking until the vegetables are tender for about 5 minutes longer. Drain and then set it aside.
In a small saucepan whisk together the next 6 ingredients, the vinegar, pepper, sugar, water and the cornstarch. Bring to a boil and cook until thickened about 2 to 4 minutes.
When cool enough to handle. Slice the potatoes, and return the potatoes to the large saucepan with the celery and onions.
Add the vinegar mixture. Tossing to combine. (You can do this with tongs or just the 2 big spoons as if mixing a salad.)
Add the bacon. Simmer the mixture for about 10 to 12 minutes or until heated through. Serve warm.