In a pot or dutch oven over medium heat melt the coconut oil. Once hot, sear chicken thighs until lightly brown.
Pour in enchilada sauce and water then add onion and green chiles. Reduce heat to a simmer and cover. Cook chicken for 17-25 minutes or until chicken is tender and fully cooked through to at least 165 degrees internal temperature.
Careully remove the chicken and place onto a work surface. Chop or shred chicken, then add it back into the pot. Let the chicken simmer uncovered for an additional 10 minutes to absorb flavor and allow the sauce to reduce a little.
Server over cauliflower rice (or Mexican cauliflower rice), top with avocado, cheese, jalapeno, sour cream, tomato, and any other desired toppings.