In this paper, micro electrical discharge milling using deionized water as dielectric fluid was investigated. In EDM, dielectric fluid is an important factor which affects machining characteristics. When deionized water was used as dielectric fluid, machining characteristics were investigated according to voltage, capacitance, and resistivity of deionized water. Machining gap increased with increasing voltage and capacitance. As the resistivity of deionized water decreased, the machining gap increased. The wear of a tool electrode and machining time can be reduced by using deionized water instead of EDM oil. Surface roughness was also improved when deionized water was used.