Hydrous zirconia particles were prepared from $ZrOCl_2$ aqueous solution using an electro-dialysis [ED] process. For the preparation of $(Zr,Y)(OH)_4$ precipitates, 3 mol% $YCl_3$ was added into $ZrOCl_2$ aqueous solution. During the hydrolysis of 0.5 mol/L $(Zr,Y)OCl_2$ solution at $90^{circ}C$ a slurry solution was obtained. The ED process was used for the removal of chlorine from the slurry solution. Two kinds of slurry solution were sampled at the beginning and end of the ED process. The morphology of hydrous zirconia particles in the solution was observed using an inverted optical microscope and an FE-SEM. The hydrous zirconia particles were nano-crystalline, and easily coagulated with drying. Yttrium stabilized zirconia [YSZ] powder could be obtained by the calcination of $(Zr,Y)(OH)_4$ precipitates prepared from a $(Zr,Y)OCl_2$ solution by the ED process. The coagulated dry powders were shaped and sintered at $1500^{circ}C$ for 2 h. The sintered body showed a dense microstructure with uniform grain morphology.