Step 1

Melt butter in a deep saucepan over medium heat. Cook and stir onion in melted butter until translucent, about 5 minutes. Stir garlic into the onion; cook just until fragrant, 1 to 2 minutes more. Add bell pepper to the onion mixture; cook until the pepper just begins to sweat, 1 to 2 minutes more.

Step 2

Stir water, rice, parsley, and bay leaf with the onion mixture; bring to a boil, reduce heat to low, and cover saucepan with a lid. Simmer mixture until liquid is entirely absorbed and the rice is tender, about 20 minutes. Rest dish off heat for 5 minutes; fluff with a fork.