In a small saucepan combine the water and sugar.
Bring to a simmer over medium heat, whisking to dissolve the sugar.
Reduce the heat and simmer the mixture for a few minutes until it becomes syrupy. Remove from the heat and let cool.
Peel the skin of the oranges. Place the oranges into a blender and process until smooth. You'll get around 1 - 1 1/4 cups of liquid.
In a mixing bowl combine the syrup, blood orange juice, lime juice, and coconut milk. Cover the bowl with plastic wrap.
Cill the mixture in a refrigerator for 1-2 hours.
Pour the cold sorbet mixture into an ice cream maker and process according to the manufacturer’s instructions.
You can serve the soft sorbet right away, or transfer it into an ice cream container and freeze until needed.