Coarsely chop the butter. In a large mixing bowl, combine the butter, flour, and water. (Flour will not be completely moistened.)
On a lightly floured surface, knead the dough 10 times, pressing and pushing the pieces of dough together to form a rough ball. (the dough still will have some areas that look dry and some chunks of the butter will be visible.)
Turn the dough out onto a well-floured surface. Roll out the dough to form a 17x12-inch rectangle. Fold 1/3 of the dough over the center third and fold the remaining third over the top (creating three layers). Cover the dough with a clean dish towel or waxed paper and let rest for 5 minutes in the refrigerator.
Repeat Step 3. Let rest, covered, for 1 minutes more in the refrigerator. Repeat, rolling and folding into the 3 layers. Wrap the dough in plastic wrap. Chill the dough overnight in the refrigerator. Makes enough dough for 2 batches of krakeling or 2 batches of Bankets.