Spray large nonstick skillet with nonstick cooking spray. Heat over medium heat until hot. Add ham, potatoes, celery, carrot, onion and water. Cook until bubbly. Reduce heat to medium-low; cover and cook 5 to 8 minutes or until vegetables are tender, stirring once.
Meanwhile, in medium bowl, combine milk, flour and pepper; blend well. Add to skillet; cook and stir over medium heat until bubbly and thickened.