In a medium saucepan, combine the water, rice, butter, dried basil (if using), and salt. Bring to boiling; reduce heat. Simmer, covered, about 15 minutes for long grain rice (about 40 minutes for brown rice) or until rice is tender and liquid is absorbed. Remove from heat. Stir in cranberries. Let stand, covered, for 5 minutes.
Stir fresh basil (if using), parsley, and walnuts into the cooked rice just before serving.