Bring 2 cups (500 mL) water to boil. Pour over tea bags; steep for 3 to 5 minutes. Let cool completely; refrigerate until chilled thoroughly.
In blender, purée tea, watermelon, lime juice, honey and salt. Add ice; pulse until finely crushed and mixture is slushy.
Divide among tall glasses. Top with sparkling water; garnish with watermelon wedges.