An iron complex, tris(4,4′‐bis(hydroxymethyl)‐2,2′‐bipyridine) iron dichloride is reported, which operates at near‐neutral pH with a redox potential of 0.985 V versus SHE. This high potential compound is employed in the posolyte of an aqueous flow battery, paired with bis(3‐trimethylammonio)propyl viologen tetrachloride in the negolyte, exhibiting an open‐circuit voltage of 1.3 V at near‐neutral pH. It demonstrates excellent cycling performance with a low temporal capacity fade rate of 0.07% per day over 35 days of cycling. The extended cycling lifetime is the result of low permeability and improved structural stability of the newly developed iron complex compared to that of the iron tris(bipyridine) complex. The combination of high redox potential and low capacity fade rate compares favorably with those of all previously demonstrated organic and organometallic aqueous posolytes. Extensive investigation into the possible degradation mechanisms, including post‐mortem chemical and electrochemical analyses, indicates that stepwise ligand dissociations of the iron complex are responsible for the reported capacity loss during cell cycling. This investigation provides unprecedented insight to guide further improvements of such metalorganic compounds for energy storage and conversion applications.