In a small saucepan, saute onion in oil until tender. Add garlic; saute 1 minute longer. Add the tomatoes, water, oregano, basil, sugar, salt and pepper. Bring to a boil. Reduce heat; simmer, uncovered, for 40 minutes.
Meanwhile, place beans in a large saucepan and cover with water; bring to a boil. Cook, uncovered, for 8-10 minutes or until crisp-tender; drain. Add tomato mixture and cheese; cook for 5 minutes or until heated through.