Bring water to boil in large saucepan. Add lemons; cook 5 minutes to soften peel. Drain. Dry lemons well. Cut each lemon into 8 wedges, discarding seeds.
Mix salt and bay leaves in large bowl. Add lemon wedges; toss to coat well. Using a sterilized spoon, pack lemons and salt tightly in sterilized jar. Add enough lemon juice to fill jar to the rim. (Lemon wedges should be completely covered in salt and lemon juice.) Cover jar. Let stand at room temperature in cool dry place 7 days. Shake jar gently each day to redistribute lemon juice and salt.
To use preserved lemon, remove lemon with a clean utensil. Rinse the lemon under running water, removing and discarding the pulp. Once opened, refrigerate preserved lemons in covered jar up to 6 months