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Melt butter over medium heat. Add in onion and cook until translucent, but do not brown. Add in garlic and green pepper, and cook for 2 minutes more.
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Add in the flour, blending until smooth. Add in the tomato sauce, and cook for about 2 minutes. Stir in the water, filling the tomato sauce can 1 1/2 to 2 times. Add in the herbs, salt to taste, and peppers. Add in the shrimp.
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Cover the pot, and simmer the dish for about 25 to 30 minutes, until the shrimp is cooked and the dish is thickened.
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Serve with rice.