Slice peppers in half length wise and remove the pale membrane and seeds.
Add sausage, onions and minced garlic in a large, deep skillet. Cook over medium high heat until evenly brown. Reduce heat to medium and stir in tomato sauce, water, chili powder, salt and pepper; bring to a low boil. Reduce heat to low, stir in 3/4 of cheese and simmer for 20 minutes.
Meanwhile, prepare rice by bringing 4 cups of water to a boil, then add in the rice. Reduce heat to low and cover with a lid, then let simmer for 18 minutes or until water is no longer visible when tipping the pot.
Fluff the rice with a fork and then stir into tomato mixture. Simmer for 10 minutes.
Preheat oven to 350 degrees F (175 degrees C).
Spoon mixture into peppers and place in oven safe dish. Add about half an inch of water to the dish.
Bake for 20 minutes, then remove and sprinkle remaining cheese on peppers while they're still piping hot.