Combine the vinegar, shallot, garlic, salt, honey, olive oil, and water in a blender and blend until completely smooth. Taste and adjust any seasoning to taste. (You can add a little extra honey if your vinegar is too sour.)
Allow to chill for 4 hours before serving, for best flavor and texture. Shake well before serving each time.
This dressing should keep well in an airtight container in the fridge for up to 5 days.