Preheat oven to 325°F (160°C).
Remove bone from lamb chops. Cut lamb into large chunks, trimming off fat and gristle. In a large, covered baking dish, layer half of the potatoes, sprinkle with parsley, thyme, salt and pepper.
Next, layer the meat, onion, carrots, finishing with the remaining potatoes. Pour water on top, cover with aluminum foil, then cover with lid.
Bake 1 to 1 1/2 hours or until lamb is cooked and tender.