Line a 9x9 baking dish with aluminum foil.
Place ½ cup of the water into a mixing bowl, and sprinkle the gelatin powder on top.
Whisk quickly to combine the water and gelatin and let it sit while you prepare the rest of the recipe.
In a saucepan over medium heat on the stove, place the other ¾ cup of the water and the Swerve confectioners sugar substitute. Whisk together to combine until the sugar is dissolved.
Heat the sugar water mixture until just before it is boiling. Remove from the heat.
Immediately pour the heated mixture into the mixing bowl with the gelatin mixer.
Beat on medium until the mixture begins to thicken, and then raise the mixer to blend on high until stiff fluffy peaks have formed.
Quickly scoop the marshmallows mixture into the lined baking dish, and spread into an even layer.
Allow to sit for a minimum of four hours, but up until overnight when the marshmallows have formed and become stiff to the touch.
Coat a sharp knife in confectioners sugar substitute, and slice the marshmallows into 24 even pieces. Sprinkle some confectioners sugar substitute over the sliced marshmallows to keep them from sticking.