The performance of water saving method of rice cultivation, system of rice intensification, was studied in rice cultivating fields of farmers in different mandals of Visakhapatnam District under well and tank irrigated red clayey loams. System of Rice Intensification (SRI) recorded more tillers (44.2 m-2), higher number of grains per panicle (252.2) and higher grain yield (6540.7 kg ha-1) compared to other farmers practicing flood irrigation, where the number of productive tillers were 22.4 m-2, grains per panicle were 195.0 and the yield recorded was 5420.3 kgha-1. On account of water saving too, SRI consumed less water (977.0 mm) compared to farmers practice (1332.0 mm). These advantages were reflected in B-C ratio which was higher in SRI (2.05) compared to farmers practice of rice cultivated under flood irrigation (1.72). Consistent results at different locations over a period of three years proved the advantage of SRI method over flood irrigation in terms of water saving as well as yield.