Line a large rimmed baking sheet with waxed paper. Insert the sticks into the tops of the apples. In a medium-sized saucepan, combine the caramels and water over low heat; stir continuously until melted. Spoon the melted caramel over the apples to cover completely. Place the coated apples on the prepared baking sheet and let set for a few minutes before serving.

Caramel-Peanut Apples: Combine 1/4 cup creamy peanut butter with the caramels and water and coat as above. Roll the just-coated apples in 1 cup peanut butter chips, then drizzle with 1/4 cup melted semisweet chocolate chips and chill until ready to serve. For Spinkle Apples: Spoon 1 cup of melted semi-sweet chocolate chips over the just-coated apples, letting it run down the sides, then sprinkle with colored sprinkles and chill until ready to serve. For Rocky Road Apples: Roll the just-coated caramel apples in a mixture of 3/4 cup chopped walnuts and 2 cups miniature marshmallows to coat, then drizzle with 1/4 cup melted semisweet chocolate chips and chill until ready to serve. For German Chocolate Apples: Chill the caramel-coated apples until set, then coat with 2 cups of melted milk chocolate chips. Roll the just-coated apples in a mixture of 1/2 cup each of chopped pecans and coconut, then chill until ready to serve. For Rainbow Apples: Roll the just-coated apples in 1 cup mini candy-coated chocolate candies to coat. Drizzle 1/2 cup melted white chocolate chips over the candies and chill until ready to serve.