Place the watermelon, tequila, lime juice, and sugar in the blender and process until smooth.
Place 1 tsp. of chile powder at the bottom of each popsicle mold.
Pour in watermelon mixture into molds, snap on lids, insert popsicle sticks, and freeze overnight.
If tequila isn’t really your thing or you want these to be less alcoholic use only 1/3 of a cup of tequila. I used my favorite Corralejo Tequila, but you can use any tequila you want. We prefer Tajin chile powder for these. If your watermelon is super sweet, you can reduce the amount of sugar.