We developed a water-selective ceramic composite membrane for use as a dehydration membrane reactor for dimethylether (DME) synthesis from methanol. The membranes were modified on the porous stainless steel support by the sol-gel method accompanied by a suction process. The improved membrane modification process was effective in increasing the vapour permselectivity by removal of defects and pinholes. The optimized alumina/silica composite membrane exhibited a water permeance of 1.14${ imes}$10$^{-7}$ mol/$m^2$.sec.Pa and a water/methanol selectivity of 8.4 at permeation temperature of 25$0^{circ}C$. The catalytic reaction for DME synthesis from methanol using the membrane was performed at 23$0^{circ}C$, and the reaction conversion was compared with that of the conventional fixed-bed reactor. The reaction conversion of the membrane reactor was much higher than that of the conventional fixed-bed reactor. The reaction conversion of the membrane reactor and the conventional fixed-bed reactor was 82.5 and 68.0%, respectively. This improvement of reaction efficiency can last if the water vapour produced in the reaction zone is removed continuously.