The effect of Azospirillum lipoferum inoculation of seed and seedling of rice and different levels of nitrogen fertilization (0, 45 and 90 kg N/ha) were studied under two types of soil moisture regimes (80% and 100% field capacity) in pot under controlled conditions. Phosphorus, potassium and sulphur were applied at rates of 60 kg/ha, 40 kg/ha and 10 kg/ha respectively, as basal doses. Rice seed and later rice seedlings were inoculated with at least 10⁶ colony-forming units of Azospirillum lipoferum for the inoculated treatments. Colonization of roots by Azospirillum lipoferum was determined by Enzyme-Linked Immunosorbent Assay (ELISA) test. Azospirillum inoculation significantly (P=<0.001) increased the grain yield and nutrient content of rice, and an economic yield was found for the application of 45 kg N/ha with inoculum, but 80% and 100% of the field capacity values did not have any significant effect compared to the inoculation and nitrogen fertilization.