Intensive cropping systems face significant environmental and economic challenges due to current water and nutrient management practices. This study addresses the limited research on optimizing these practices in rice-canola rotations, focusing on enhancing sustainability through improved water and nitrogen (N) management. Utilizing the DSSAT crop growth model, we evaluated three irrigation scenarios for rice- I1 (100 % irrigation requirement: IR), I2 (80 % IR), and I3 (60 % IR)-alongside three N application levels: N1 (30 % below RAN: regional average N), N2 (RAN), and N3 (30 % above RAN). Key sustainability indicators, including water productivity (WP), nitrogen use efficiency (NUE), and economic productivity, were analyzed. The DSSAT model demonstrated strong predictive accuracy, with yield differences of only 236 kg ha⁻¹ for rice and 121 kg ha⁻¹ for canola between observed and simulated values. A 40 % reduction in water use increased rice yield to a maximum of 5654 kg ha⁻¹ under I3N2 conditions. Additionally, this reduction in water consumption resulted in a 27 % decrease in production costs, significantly enhancing WP, net benefits, and gross benefits of rice by 46.7 %, 43.1 %, and 47.9 %, respectively. Conversely, a 30 % increase in N application for canola correlated with a 9 % yield increase, underscoring the importance of tailored N strategies. Furthermore, N3 raised WP, NUE, net benefits, and gross benefits of canola by 6.7 %, 1.4 %, 9.1 %, and 9.2 %, respectively, compared with current N application level. Overall, this study illustrates the potential for substantial water savings in rice cultivation while recommending stable or reduced N application levels. These management strategies enhance farm performance, lower production costs, and contribute to the sustainability of rice-canola cropping systems, promoting both agricultural productivity and environmental stewardship.