In the same skillet, add the diced onion and sauté on a medium heat until golden brown in colour. Once browned, add the grated carrot, tomato paste and garlic. Sauté for 5minutes or until the mixture starts to brown and develop colour.
Add the canned tomatoes, water, wine, bay leaves and salt. Stir and bring to a light simmer. Cover and allow to simmer on a low-medium heat for 1 hour, stirring occasionally.
Just before the sauce is ready, prepare the pasta as per the packet instruction or until al dente. Note: I prefer pasta that still has a bite to it as it'll continue cooking once added to the sauce. Also, keep 1 cup of pasta water aside if you'd like to add more liquid to the sauce.
Once the sauce has simmered for approx. 1 hour, remove the lid and allow any unnecessary liquid evaporate on a low-medium heat. Remove the bay leaves. Add the chopped basil and meatballs and stir gently. Remove from the heat and add the drained pasta and mix until combined, adding a splash of pasta water if the sauce is thicker than you'd prefer.
Garnish with grated parmesan, basil and a drizzle of chili oil. Serve immediately.