In a large pot or Dutch oven over medium heat, cook the sausage, beef, onion, and garlic until well browned; drain fat.
Stir in crushed tomatoes, tomato paste, tomato sauce, and water. Mix in sugar, basil, Italian seasoning, salt, and pepper.
Reduce heat to low, cover, and simmer 1 1/2 hours, stirring occasionally. Tilt lid on pot but be careful as sauce pops all over stove top.