In a large skillet, brown chicken in oil for 2-3 minutes on each side. Remove and keep warm. In the same skillet, sauté the onion, green pepper and garlic until tender. Stir in the tomatoes, water, rice, bouillon and seasonings. Bring to a boil. Pour into a greased 11-in. x 7-in. x 2-in. baking dish; top with chicken.
Cover and bake at 350 degrees F for 35-40 minutes or until rice is tender. Uncover; spoon picante sauce over chicken and sprinkle with cheese. Bake 5 minutes longer or until cheese is melted. Garnish with olives. Then serve hot.