We demonstrate the gold(III)-catalyzed direct substitution of benzylic alcohols in water. These atom economic and environmentally benign protocols afford S-benzylated productsi nm oderate to excellent yields.I nc ontrast, common Lewis or Brønsted acids as catalyst, ando rganic solventss uch as dichloromethane or toluene were ineffectivef or the S-benzylation of mercaptobenzoic acids.W ater can be an attractive toolf or newt ransitionm etalcatalyzed reactions.AHammetts tudy for the rate constants with various substituted alcohols shows ag ood correlation (R 2 = 0.97) between the log(k X / k H )a nd the s + + value of the respective substituents. From the slope negative 1 valueso f2 .35 are ob-tained,s uggesting that there is ab uild-up of positive charge in the transitions tate.O ur catalytic system can be performed with the use of only 2mol% of gold(III) catalyst without any other additives in water, and scaled up to 10 mmol scale (85% isolated yield). Notably,t he present method can accomplish the S-benzylation of unprotected mercaptobenzoic acids,w hich is chemoselective andl eaves the carboxyl group intact. Furthermore,t he direct substitution of allylica nd propargylic alcohols also proceeded smoothlyi ngoody ields.