Place 1 in. of water in a saucepan. Add squash and zucchini. Bring to a boil; cook for 4-5 minutes or until crisp-tender. Drain and set aside. In a large skillet, cook bacon over medium heat until crisp. Using a slotted spoon, remove to paper towels. Drain, reserving 1 tablespoon drippings.
In the drippings, saute onion until tender. Add the squash, brown sugar and seasonings. Stir in tomatoes. Bring to a boil over medium heat. Reduce heat; simmer, uncovered, for 10 minutes or until heated through. Sprinkle with bacon. Serve with a slotted spoon.