In a saucepan, combine the water and sugar. Stir to dissolve and bring the sugar-water to a boil.

Add in the cranberries and jalapeño, then lower the heat to low-medium. Continue to boil and stir for 10 to 12 minutes.

Remove from heat, sprinkle in the allspice, and cover. Allow the sauce to cool covered until it reaches room temperature. Then refrigerate the sauce for 30 minutes to an hour prior to serving.