The syntheses of both enantiomers of the novel diphosphine ligand 2,2'-bis(diphenylphosphanyl)-1,1'-bidibenzofuranyl (BIFAP, 1) and the water-Advantage is taken of the very high regioselectivity in ring functionalisation of the 1,1'-bidibenzofuranyl backbone. These ligands are used in the ruthenium-catalysed hydrogenation of methyl acetoacetate and (Z)-acetamidocinnamic acid in methanol and water. In methanol both BIFAP and BIFAPS give the products in very high enantiomeric excess. With BIFAPS in water a slight drop in the ee of the products is observed. When BIFAPS is used with either water or methanol as the solvent the addition of a small amount of acid turns out to be essential for a fast reaction and high asymmetric induction.