In a saucepan over medium heat, add water and sugar.
Bring to a light boil, stirring until sugar has dissolved.
Remove from heat and let cool.
Pour mixture into a 5-cup pourable bowl or measuring cup.
Stir in fresh lime juice, tequila, orange liquor, and water.
Pour mixture into ice cube trays or a freezer container.
Place frozen margarita cubes into a freezer bag and store until ready to use.
To use, place frozen cubes into a high-power blender and blend until slushy-texture.
Add ice and blend until smooth.
*optional but so yum* Add a splash of fresh lime juice, tequila, and orange liquor to thin and enhance the flavors.
Rim margarita cups with salt (optional) and serve with fresh lime slices.
Taste and adjust if needed.