Cut squash in half lengthwise and remove fibers and seeds. Place cut-side down in a baking dish and add water to the dish to a depth of 1/4 inch.
Bake 30 minutes or until squash is soft but not mushy. Remove from oven.
In a small bowl, combine butter, lime juice, and chili powder; stir until well blended. Season with salt and pepper. spoon the butter mixture into baked squash cavities and serve hot.
