Mix flour, baking powder, and salt together in a large bowl. Slowly add in the water, a little at a time, using a fork to blend until the mixture forms into dough. Knead the dough until all the lumps are gone about 5 minutes. Cover with plastic wrap and let the dough rest about 1 hour.
Meanwhile, melt the lard in a Dutch oven over high heat. When it just begins to smoke, drop a small piece of dough into the oil. If it quickly rises to the top, the oil is hot enough to begin frying.
Take a piece of dough and roll it into a golf ball-sized ball. Stretch the dough into a disk-like shape as you would a pizza dough. When you have a piece ready to go, carefully place the dough into the oil and let it brown on 1 side about 1 1/2 minutes and then turn it over to brown the other side for another 1 1/2 minutes. Remove the fry bread from the oil and let it drain on paper towels until cool. Enjoy fry bread by sprinkling it with chili, honey, or powdered sugar.