From a conceptual standpoint, the water photoelectrolysis reaction is the simplest way to convert solar energy into fuel. It is widely believed that nanostructured photocatalysts can improve the efficiency of the process and lower the costs. Indeed, nanostructured light absorbers have several advantages over traditional materials. This includes shorter charge transport pathways and larger redox active surface areas. It is also possible to adjust the energetics of small particles via the quantum size effect or with adsorbed ions. At the same time, nanostructured absorbers have significant disadvantages over conventional ones. The larger surface area promotes defect recombination and reduces the photovoltage that can be drawn from the absorber. The smaller size of the particles also makes electron-hole separation more difficult to achieve. This chapter discusses these issues using selected examples from the literature and from the laboratory of the author.