Wash and sterilize 10 pint jars or 20 half-pint jars.
Cut peeled rind into fairly large pieces. In a glass, enamel or stainless steel container, stir the lime into 1 gallon of water. Add the rinds; they should be barely covered with water. You may have to add more water. Soak overnight.
The next day, rinse the watermelon pieces in 3 or 4 washings of clear water, changing the water each time.
Put the rinds into a large cooking pot and just barely cover with water. Cook gently for two hours or until the rinds are tender.
Remove from heat and cool slightly. Drain rinds and immediately dunk into cold water.
Chop rinds into smaller (2-inch) pieces and pack in ice for 1 ½ hours.
Put 9 pounds of sugar and 3 cups water into a large cooking pot. Stir over low heat until dissolved. Tie spices in a spice bag made of two thicknesses of cheese cloth and add to the sugar solution. Remove the rinds from the ice, drain and add to the large pot with spices and the dissolved sugar. Cook on medium-low for 1 hour.
Add 1 quart white vinegar and cook for 30 minutes more.
Pack rinds in sterilized jars, filling with the liquid. Seal jars according to canning directions.