Place the lamb shanks in a deep skillet or saucepan. Add the red wine, water, bay leaf, and peppercorns. Sprinkle with the salt and bring to a boil over medium heat.

Reduce the heat to medium-low, cover, and simmer, turning the shanks every 20 minutes, for 90 minutes or more, until the meat is tender and easily comes off the bone. Reduce the heat further or add a little water as necessary to keep the shanks from burning.

Transfer the shanks to a serving plate. Cook the sauce over medium heat for 3 to 5 minutes more to thicken. Pour the sauce over the shanks and serve.