Pick through cranberries and throw away any bad ones. In a medium saucepan set to medium-high heat, add cranberries, water, orange juice, and honey. Bring to a boil and reduce heat to low.
Let thicken, stirring occasionally for about 8-10 minutes until most of the cranberries half burst and the sauce is the desired thickness (sauce will thicken much more as it cools). You can use a potato masher to break up cranberries if you want a smoother consistency.
Remove from heat and stir in orange zest, cinnamon, nutmeg and salt. Taste and adjust if desired. Watch out - it will be hot!
Refrigerate in a sealed container and bring to room temperature before serving. Sauce will keep in the refrigerator for up to two weeks.