Preheat oven to 350°. Arrange fish in single layer in a 13 x 9-inch baking dish, drizzle with lime juice, and sprinkle with 1/2 teaspoon salt. Cover and marinate in refrigerator for 30 minutes, discard marinade.

Heat the olive oil in a Dutch oven over medium-high heat. Add onion and garlic, and sauté for 5 minutes or until lightly browned. Add tomatoes, 1/2 cup olives, water, 2 tablespoons capers, 2 tablespoons peppers, oregano, and bay leaves. Bring to a boil, reduce heat and simmer 15-20 minutes to reduce excess liquid. Stir in 1/2 teaspoon salt. Discard bay leaves.

Spoon half of sauce over fish. Bake for 15 mintues or until fish flakes easily when tested with a fork. To serve, top with remaining sauce, olives, capers, and peppers. Garnish with parsley sprigs, if desired.