Preheat oven to 325 degrees.
Sprinkle chopped pecans on bottom of greased tube or bundt pan.
Mix cake mix, pudding, water, oil and 1 cup of the rum. Beat in eggs one at a time.
Pour batter into pan on top of the pecans. Bake for 1 hour at 325 degrees. Let cool.
For the sauce: Boil butter, sugar, water and 2 ounces of rum together in saucepan. Pour over cake while it's still in the pan, after you've removed it from the oven. This will soak into the cake.
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