Water lilies grow back each year from rhizomes when the conditions are right, but during their first year of life, much of their energy goes into creating those rhizomes and strong root systems. When grown from seed, you should see green growth and developed lily pads by the end of the season, but the plant probably won't be mature enough to bloom until the following year.
When grown from rhizomes, it doesn't take long for water lilies to mature to the blooming stage. When planted in the spring, most species bloom by mid-summer and into the fall. The rhizomes develop buds that turn into new rhizomes, so you can propagate the plants by dividing the rhizomes in the fall. This might delay the blooming of both plants the following year as they work on building energy reserves in the rhizomes.
Hardy water lilies grow best in U.S. Department of Agriculture plant hardiness zones 3 through 11, while tropical water lilies thrive in USDA zones 10 through 12, both depending on the species. In areas of the country outside their preferred zones, tropical lilies grow as annuals, so it's best to plant them as rhizomes instead of as seed -- you might not have time for the plants to fully mature from seed before the cold weather kills them. Hardy water lilies work well from seed or rhizomes in their preferred zones.
To help your water lilies reach maturity in a timely fashion, plant them in wide, shallow containers such as 10 inches deep and 15 inches in diameter. Cover the soil with pea gravel to keep it from floating out of the pot, and then set the pots underwater. Most water lilies prefer about 12 inches of water, but some can grow with as little as 6 inches of water above the soil. Keep these plants confined to pots even if your pond has a soil bottom. Water lilies are considered invasive in some areas, spread quickly and can take over your pond if not contained in pots. Pots also make it easy to bring the plant indoors in the winter if necessary; hardy varieties typically need water that stays above 50 degrees Fahrenheit, while tropical water lilies need 70-degree F water or warmer.