Preheat the oven to 400°F (200°C). Lightly grease a 9x13-inch baking dish.
In a large mixing bowl, stir together the jarred pasta sauce, water, ricotta, 1 cup of the shredded mozzarella, chopped cooked chicken, grated Parmesan, and uncooked penne until evenly combined.
Transfer the mixture to the prepared 9x13-inch baking dish and spread into an even layer. Cover tightly with foil.
Bake covered for 55 minutes, or until the pasta is tender when tested with a fork.
Remove the foil, sprinkle the remaining 1 cup of shredded mozzarella over the top, and return to the oven uncovered for 5 to 10 minutes, until the cheese is melted and bubbly.
Remove from the oven, sprinkle with chopped basil, and let rest a few minutes before serving.