In a large saucepan, cook beef, garlic and 1/2 cup onion over medium heat, until meat is no longer pink; drain. Stir in the beans, water, chili powder, salt and pepper; bring to a boil. Reduce heat; simmer, uncovered, for 30 minutes.
Place hot dogs in buns. Top each with 1/4 cup chili bean mixture. Serve with cheese and remaining onion.