Butter a 9x13 inch baking dish. In a large saucepan, melt the butterscotch chips with the peanut butter, stirring frequently until smooth. Stir in the crisp rice cereal. Press half of the cereal mixture into the bottom of the prepared pan.
In the top of a double boiler, melt chocolate chips and butter together, stirring occasionally. Mix in confectioners' sugar and water, and stir until smooth. Spread the chocolate mixture evenly over the cereal layer in the pan. Top with the remaining cereal mixture, and press down lightly. Cover, and chill for about 1 hour before cutting into squares.