In a small saucepan, heat the olive oil over medium heat. Add the rice and toast, stirring frequently, for about a minute, just until the rice begins to brown and smell a bit nutty.
Add the water, a generous pinch of salt, and the bay leaf. Bring to a boil, then reduce heat to low and cover. Cook on low without opening the lid for 15 minutes, or according to rice package instructions. Remove from heat and let sit without opening the lid for 10 minutes.
Fluff the rice with a fork and remove the bay leaf, then stir in the lime zest, lime juice and chopped cilantro. Adjust salt to taste and serve immediately.