The reduced surface of a natural Hematite single crystal alpha-Fe2O3(0001) sample has multiple surface domains with different terminations, Fe2O3(0001), FeO(111), and Fe3O4(111). The adsorption of water on this surface was investigated via Scanning Tunneling Microscopy (STM) and first-principle theoretical simulations. Water species are observed only on the Fe-terminated Fe3O4(111) surface at temperatures up to 235 K. Between 235 and 245 K we observed a change in the surface species from intact water molecules and hydroxyl groups bound to the surface to only hydroxyl groups atop the surface terminating Fe-III cations. This indicates a low energy barrier for water dissociation on the surface of Fe3O4 that is supported by our theoretical computations. Our first: principles simulations confirm the identity of the surface species proposed from the STM images, finding that the most stable state of a water molecule is the dissociated one (OH + H), with OH atop surface terminating Few sites and H atop under-coordinated oxygen sites. Attempts to simulate reaction of the surface OH with coadsorbed CO fail because the only binding sites for CO are the surface Fe-III atoms, which are blocked by the much more strongly bound OH. In order to promote this reaction we simulated a surface decorated with gold atoms. The Au adatoms are found to cap the under-coordinated oxygen sites and dosed CO is found to bind to the Au adatom. This newly created binding site for CO not only allows for coexistence of CO and OH on the surface of Fe3O4 but also provides colocation between the two species. These two factors are likely promoters of catalytic activity on Au/Fe3O4(111) surfaces.