Summer Squash with Braised Red Pepper and Basil

In a large skillet, heat 2 tablespoons of the olive oil. Add the red pepper, season with salt and pepper and cook over high heat, stirring, until sizzling. Add 1/4 cup of the water, cover and cook over moderately low heat for 5 minutes. Add the remaining 1/4 cup of water, cover and cook, stirring a few times, until the pepper is tender and the water has reduced to about 2 tablespoons, about 5 minutes longer. Stir in the summer squash and the remaining 1 tablespoon of olive oil. Cover and cook over moderate heat, stirring a few times, until the squash is just tender, about 4 minutes. Remove from the heat and stir in the basil. Season with salt and pepper and serve.