The role of water in the oxidation of ethanol to acetic acid on Sn-Mo-O catalysts was studied by catalytic test and FTIR spectroscopy of adsorbed species. The reaction showed a typical behavior of series reactions involving oxidation of ethanol to acetaldehyde and of the latter to acetic acid and CO2. Addition of water to the feed gas decreased the oxidation rate and significantly increased the selectivity to acetic acid, strongly contributing to decreasing the number of secondary products. FTIR analyses showed that water promotes desorption of ethanol and carboxylates, present as bridging and monodentate species. Decreasing catalytic rate values and increasing selectivity to acetic acid in the presence of water follow from site blocking by hydroxyl groups.