A new approach based on catalytic distillation (CD) technology was proposed to remove water from ethanol. Isobutylene was introduced to react with water in the CD column. The commercial software simulation tool Aspen Plus was used to investigate the effects of key design factors such as operating pressure and temperature, reactant ratios, reflux and distillate to feed ratios, number of separation and reaction stages, and feed and reaction zone location. It was found that the CD technology offers potential advantages of reduced energy consumption and reduced capital cost over traditional approaches for the removal of water from ethanol.