Add onion and saute until lightly browned. Stir in tomatoes, water, bell pepper, mushrooms, parsley, paprika, salt, pepper, rice and olives. Arrange chicken in skillet, cover and bring to a boil.
Reduce heat to medium low and simmer for 1 hour. Note: If chicken is cooked through but rice is unfinished, remove chicken and let rice finish cooking; to serve, slice chicken and lay on top of cooked rice.