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Beef Bourguignonne

2 lb lean beef (such as stew beef) cut in 1 ½ inch pieces
2 tsp salt
1/2 tsp pepper
1/3 cup oil
1 onion, chopped
2 carrots, chopped
1 clove garlic, minced
1 can (6 oz) tomato paste
2 cups water
1 cup red wine
½ lb fresh mushrooms

Sprinkle beef with salt and pepper.  Heat oil in large skillet and brown meat.  Transfer to large greased casserole dish.  Add onion, carrot and garlic to pan and cook about 5 minutes.  Add onion mixture to beef; then add tomato paste, water, wine and mushrooms.  Cover with foil and bake at 350 degrees for 2 ½ hours, or until meat is tender.