Add the fresh cranberries, granulated sugar, water, orange zest, and orange juice to a medium saucepan. Stir gently to combine all ingredients evenly.
Place the saucepan over medium heat and bring the mixture to a gentle boil. Stir occasionally as the sugar dissolves into the liquid.
Continue cooking for 10 to 15 minutes. The cranberries will begin to burst naturally, releasing their juices and creating a vibrant red sauce. Stir occasionally throughout the cooking process.
As the cranberries soften and break down, the sauce will begin to thicken. Continue cooking until the mixture reaches a slightly loose but glossy consistency.
Remove the saucepan from the heat and stir in the vanilla extract until fully incorporated.
Allow the cranberry sauce to cool in the saucepan for about 20 minutes. The sauce will continue thickening as it cools.
Transfer the sauce to a serving bowl or airtight container and refrigerate until chilled. Serve cold or at room temperature.