Over the past years, so‐called water annealing of TiO2 nanotube (NT) arrays has attracted considerable attention as a tool to enhance the nanotubes’ photocatalytic properties. The present work investigates the effect of different water‐annealing treatments on TiO2 nanotubes and compares it to thermally annealed tubes. We find that the most effective water annealing is water immersion of TiO2 NT arrays at 70 °C for several days. The two main effects are i) a partial crystallization of the tubes to anatase, and ii) an etching of the tube walls that leads to a roughening of the walls and, thus, to a higher surface area. Under the best conditions, water annealing is almost as effective in providing enhanced photocatalytic AO7 degradation as a classic thermal annealing of the tubes. We, however, find that water annealed tubes – due to their only partial crystallization – do not perform well when used as photoelectrodes. For photocatalysis, most efficient is a combination of water annealing, followed by thermal annealing, which provides both a larger surface area and a high crystallinity.