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Heat the olive oil in a medium saucepan over medium heat. Add the onion and saute until soft, about 5 minutes.
Pour the water into the pan. Bring to a boil. Add the rice, stir, then cover the pan and reduce the heat to a simmer. Let the rice cook for 15 to 18 minutes, until the rice is tender. Turn off the heat and allow it to sit for 5 minutes, then fluff with a fork.
Pour the enchilada sauce into the rice, followed by the green chiles and the cilantro. Stir to combine.