In a saucepan, melt butter. Stir in flour and salt until smooth. Gradually add milk. Bring to a boil; cook and stir for 2 minutes or until thickened.
In a greased 1quart baking dish, layer the potatoes and onions. Pour white sauce over potatoes and onions. Cover and bake at 350 degrees for 1 hour or until potatoes are tender. Sprinkle with bacon.
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