In 10-inch omelet pan or skilet melt 2 tablespoons butter over medium heat. Add onion, green pepper and potatoes; cook over medium heat, stirring occasionally, until vegetables are crisply tender (5 to 7 minutes).
Add Spam and olives; continue cooking until Spam is heated through. Loosen sauteed ingredients from bottom of pan; add remaining 1 tablespoon butter. Tilt pan to cover bottom with butter.
In small bowl mix eggs, water, and pepper; pour over Spam mixture. Cover; cook over low heat 12 to 15 minutes or until egg mixture is set on top. With pancake turner, loosen edges and bottom; invert onto serving platter.