On a baking sheet, arrange the dried Arbol peppers and roast for 15 minutes or until lightly charred. Remove from heat and let cool before handling.
Purée the roasted Arbol peppers until smooth in a food processor or blender.
Add the cubed bell pepper, celery, carrot, and onion to a heated pan over medium heat. For about five minutes, cook the vegetables until soft.
Combine the pureed Arbol peppers with the cooked vegetables in the pan.
Mix in fresh cilantro, cumin powder, chili powder, salt, and black pepper.
In a saucepan, combine water and distilled white vinegar and bring to a gentle simmer. Simmer the mixture for about 10 minutes, stirring occasionally.
Taste the sauce and adjust the seasoning as needed. Once done, remove the sauce from the heat and let it cool before serving or storing it in an airtight container in the refrigerator for up to 2 weeks.