In a large skillet, saute green peppers and onion in butter until tender.
Add tomatoes, mushrooms, olives.
Cook the spaghetti and drain.
In another pan brown the ground beef and drain. Add the ground beef to the vegetable mixture
Place half of the spaghetti in a greased 13 x 9 baking dish. Top with half of the vegetable mixture.
Sprinkle with 1 cup of cheddar cheese.
Repeat layers.
Mix the soup and water until smooth and pour over the casserole
Sprinkle with parmesan cheese.
Bake uncovered at 350 degrees for 30-35 minutes or until heated through.