Clean and cut the squid and chop the tentacles into small pieces. Heat a 12-inch frying pan and add the oil, garlic, onion, and celery, and saute until the onion is clear. Add the prepared squid and the remaining ingredients except the water and rice. Bring to a simmer and cook for 20 minutes, covered.
Stir in the rice. Add the water, bring to a boil, and turn to a simmer. Cook, covered, for 25 minutes or until the rice is done. Additional salt may be added if needed.