The complexes cis-[Pd(H 2 O) 2 (PPh 3 ) 2 ]X 2 AE nH 2 O (Ia: X ¼ p-CH 3 C 6 H 4 SO 3 , n ¼ 2; IIa: X ¼ CH 3 SO 3 , n ¼ 0) have been synthesized by reacting Pd(OAc) 2 , PPh 3 and HX in acetone in the presence of H 2 O. They have been characterized by IR, 1 H and 31 P NMR spectroscopy and TA analysis. By re-crystallization of these complexes, crystals of Ia and IIa AE 2CH 2 Cl 2 suitable for the X-ray analysis have been obtained. The solid-state investigation of Ia reveals that the two p-toluenesulfonato units act as counter anions of a dicationic complex, in which the metal atom is surrounded in a square planar environment realized by two water molecules and two PPh 3 moieties that are cis to each other. The X-ray investigation of IIa AE 2CH 2 Cl 2 shows that also in this case the two PPh 3 are cis to each other and that in the acentric triclinic cell there are two independent [Pd(H 2 O) 2 (PPh 3 ) 2 ] 2þ units, together with two methanesulfonato counter anions and two crystallization molecules of CH 2 Cl 2 . The cationic complexes Ia and IIa are easily interconverted with the neutral species trans-[Pd(p-CH 3 C 6 H 4 SO 3 ) 2 (PPh 3 ) 2 ] (Ib) and trans-[Pd(CH 3 SO 3 ) 2 (PPh 3 ) 2 ] (IIb), respectively, depending on temperature and solvent. In chloroform at r.t., complex Ia catalyzes the carbonylation of ethene to a polyketone; at higher temperature in methanol it catalyzes the hydroesterification of ethene. In both cases catalysis is accompanied by CO 2 evolution. These results suggest that catalysis occurs via initial formation of a Pd(II)-H species by interaction of H 2 O with CO on the metal center though a reaction closely related to that of the water gas-shift.