In bowl of food processor, combine all ingredients except pork and water; process until smooth. Pour over pork shoulder, turning to coat on all sides. Marinate at least 3 hours or overnight.
In large pot, mix pork, marinade and water. Bring to simmer over low heat. Cook covered 2-1/2 to 3 hours or until pork pulls apart easily with a fork, turning meat every half hour. Remove pork from pot; shred. Meanwhile, over high heat, reduce sauce by 2/3 or until slightly thickened. Pour over shredded pork and toss to coat.