Place the diced watermelon in a blender and blend until smooth.
Strain the watermelon puree through a fine-mesh sieve into a bowl to remove any pulp, ensuring a smooth texture.
In a small saucepan, combine the water and sugar (or honey) over medium heat. Stir until the sugar is dissolved to create a simple syrup, then let it cool completely.
Mix the cooled simple syrup and lime juice into the watermelon puree, stirring thoroughly.
Pour the mixture into a shallow, freezer-safe container and freeze for 3-4 hours, stirring every 30 minutes to break up ice crystals and achieve a smooth consistency.
When fully frozen and smooth, scoop the sorbet into serving bowls or cones and enjoy!
Notes
For a more natural option, substitute granulated sugar with honey. Ensure the watermelon is seedless for a smoother texture.