LaCoO 3 is an active, stable catalyst in alkaline solution for oxygen evolution reaction (OER). With lower cost, it is a potential alternative to precious metal oxides like IrO 2 and RuO 2 in water electrolysis. However, room still remains for improving its activity according to recent understandings of OER on perovskite oxides. In this work, Fe substitution has been introduced in LaCoO 3 to boost its OER performance. Density function theory (DFT) calculation verified that the enhanced performance originates from the enhanced Co 3d-O 2p covalency with 10 at% Fe substitution in LaCoO 3 . Both DFT calculations and Superconducting Quantum Design (SQUID) magnetometer (MPMS-XL) showed a Co 3+ spin state transition from generally low spin state (LS: t 2g 6 e g 0 , S = 0) to a higher spin state with the effect of 10 at% Fe substitution. X-ray absorption near-edge structure (XANES) supports DFT calculations on an insulator to half-metal transition with 10 at% Fe substitution, induced by spin state transition. The half-metallic LaCo 0.9 Fe 0.1 O 3 possesses increased overlap between Co 3d and O 2p states, which results in enhanced covalency and promoted OER performance. This finding enlightens a new way of tuning the metal−oxygen covalency in oxide catalysts for OER.