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Preheat oven to 350°F. Lightly coat the bottom of an 8x8x2-inch baking pan with nonstick cooking spray, being careful not to coat sides of pan. Set pan aside.
In a medium saucepan melt butter; remove from heat. Stir in granulated sugar, water and vanilla. Stir in flour, cocoa powder and baking powder until combined. Stir in chocolate chips. Pour batter into prepared pan.
Bake for 18 to 20 minutes or until a toothpick inserted near the center comes out clean. Cool on a wire rack. Cut into bars. Sprinkle with the powdered sugar.