In a large pot, heat olive oil over medium heat. Add onions, salt & pepper. Cook until onions are just starting to soften.
Add carrots and cook another 4-5 minutes.
Add tomatoes, by hand, giving them a little squish as you drop them in (or you can drop them all in at once and give a little squish with a heavy wooden spoon, but not as fun).
Add water, sugar and herbs and stir together.
Simmer sauce, uncovered, 30-40 minutes.
Using an immersion blender, process the sauce until smooth (You may also use a regular blender if immersion blender is not an option)
Garnish with additional fresh basil leaves when serving.