Heat oven to 350°F. Spray 12x8-inch (2-quart) glass baking dish with nonstick cooking spray.
Reserve 1/2 cup cheese for topping. In large bowl, combine remaining cheese, rice, cilantro, salsa and water; mix well. Spoon into sprayed baking dish; spread evenly. Arrange chicken breast halves over rice mixture. Cover with foil.
Bake at 350°F. for 55 to 65 minutes or until chicken is fork-tender and juices run clear, and rice is tender. Uncover; sprinkle with reserved 1/2 cup cheese. Bake, uncovered, an additional 5 minutes or until cheese is melted.