Brown the sausage in a large skillet.

When the sausage is cooked through, drain the fat then stir in the taco seasoning and water. Stir to combine. Cook until the water is reduced.

Add the diced tomatoes with chilies, refried beans, and Velveeta. Stir to combine.

Cook on medium low until the Velveeta is melted and all the ingredients are well combined. Transfer to a serving bowl before serving.