Combine all ingredients except the water in a food processor just until butter and cheese is incorporated into the flour and the mixture looks crumbly.
Add the water and gently knead into a dough. Flatten the dough into a disk and wrap in saran wrap or wax paper. Refrigerate for at least an hour.
Next, roll out the dough very thin, no more than 1/8 in thick. The thinner the dough is rolled out, the crispier your crackers will be.
When it is rolled out to your desired thickness, cut it into 1 in squares with a knife or a pizza cutter.
With a toothpick or skewer, make a hole in the center of each square to prevent bubbling.
Line a cookie sheet with parchment paper. Place the squares about an inch apart onto the cookie sheet, then bake at 350 F for 15-17 minutes.