To remain economically and environmentally sustainable, Australian rice growers need to be able to readily respond to market opportunities and increase cropping system productivity and water productivity. Water availability is decreasing whereas its price is increasing. Alternative irrigation layouts and water management approaches could contribute to reduced water use and increased irrigation efficiency. This paper reports results for the first crop (rice) in a cropping system experiment to compare permanent raised bed and conventional layouts on a transitional red-brown earth at Coleambally, New South Wales. The performance of conventional ponded rice grown on a flat layout was compared with rice grown on 1.84-m wide, raised beds with furrow and subsurface drip irrigation. In addition, deep and shallow ponded water depth treatments (15 and 5 cm water depth over the beds) were imposed on the rice on beds during the reproductive period. A range of nitrogen (N) fertiliser rates (0–180 kg N/ha) was applied to all treatments. The traditional flat flooded treatment (Flat) achieved the highest grain yield of 12.7 t/ha, followed by the deep (Bed 15) and shallow (Bed 5) ponded beds (10.2 and 10.1 t/ha, respectively). The furrow (Furrow) irrigated bed treatment yielded 9.4 t/ha and the furrow/drip (Furr/Drip) treatment yielded the lowest grain yield (8.3 t/ha). Grain yield from all bed treatments was reduced owing to the wide furrows (0.8 m between edge rows on adjacent beds), which were not planted to rice. Rice crop water use was significantly different between the layout–irrigation treatments. The Flat, Bed 5 and Bed 15 treatments had similar input (irrigation + rainfall – surface drainage) water use (mean of 18.3 ML/ha). The water use for the Furrow treatment was 17.2 ML/ha and for the Furr/Drip treatment, 15.1 ML/ha. Input WP of the Flat treatment (0.68 t/ML) was higher than the raised bed treatments, which were all similar (mean 0.55 t/ML). This single season experiment shows that high yielding rice crops can be successfully grown on raised beds, but when beds are ponded after panicle initiation, there is no water saving compared with rice grown on a conventional flat layout. Preliminary recommendations for the growing of rice on raised beds are that the crop be grown as a flooded crop in a bankless channel layout. This assists with weed control and allows flooding for cold temperature protection, which is necessary with current varieties. Until we find effective herbicides and other methods of weed control and N application that do not require ponding, there is little scope for saving water while maintaining yield on suitable rice soil through the use of beds.