Different paddy cultivation methods were introduced to offset the heavy cost of traditional paddy cultivation by minimizing the use of fertilizers, pesticides and water utility by scientific management practices thereby increasing the profits of the farmers. As the agricultural land is shrinking and water availability for irrigation is declining with time. Rice consumes 3000–5000 litres of water for producing one kg of rice depending on different methods of cultivation. To find out efficient resource utilization methods, a long term investigation was carried out on conservation agriculture in paddy eco-systems at Agricultural and Horticultural Research Station, Kathalagere, Tq. Channagiri, Davanagere District, Karnataka, India from 2009 to 2013. Among different methods of rice cultivation, system of rice intensification (SRI) paddy cultivation has recorded highest grain yield of (5471 kg/ha), water use efficiency (101.8 kg/ha-cm) and 40.15% water saving over normal/traditional method of rice cultivation. Similarly, it was recorded 14.29% higher grain yield and additional returns of Rs. 23431 over normal/traditional rice cultivation. Adoption of drum seeder has given 6.6% higher grain yield with an additional return of Rs. 20168 and 2.70% water saving over normal planting. Among different rice cultivation methods, highest water saving was recorded in Aerobic method of paddy cultivation (50.05%). Based on the above results, we conclude that adoption of system of rice intensification (SRI) showed higher water use efficiency, productivity and profitability and it was found to be the best method of effective utilization of available natural resource (water) in paddy cultivation.