Combine carrots, 1/4 cup water, 1 1/2 tablespoons tarragon, butter, vinegar and honey in heavy large skillet. Bring to boil. Reduce heat to medium; cover and simmer until carrots are almost tender, about 12 minutes.
Uncover; cook until carrots are tender and liquid is reduced to glaze, about 6 minutes longer. Season with salt and pepper. Transfer to platter. Sprinkle with 1 1/2 tablespoons tarragon.