Place the potatoes into a large saucepan and cover with lightly salted water. Bring to a boil over high heat then reduce heat to medium-low, cover and simmer until just tender; about 15 minutes. Drain the potatoes and allow to cool to room temperature. Dice once cooled.
Place the bacon in a large deep frypan and cook over medium-high heat turning occasionally until evenly browned; about 10 minutes. Drain the bacon slices on a paper towel lined plate. Allow to cool then crumble the bacon into a large bowl.
Place the cooled potatoes into the bowl with the bacon then mix in the sour cream, mayonnaise, Cheddar cheese, chives, salt and pepper. Refrigerate overnight before serving.