We report density functional electronic structure calculations to monitor the change in the surface characteristics of the Si (100)-2x1 surface after fluorination followed by interaction with water. Embedded finite silicon clusters are used to model an extended Si (100)-2x1 surface. Two high symmetry pathways and subsequent adsorption sites were examined: (i) adsorption of an fluorine atom directing onto a silicon dangling bond to form a monocoordinated fluorine atom (ii) adsorption of a fluorine atom directing on top of silicon dimer to form a bridging dicoordinated fluorine atom. However, in the later case we find that no barrier exists for the bridging fluorine atom to slide towards silicon dimer dangling bond to form more stable mono coordinated Si-F bond. We calculated activation barriers and equilibrium surface configuration as a function of fluorine coverage upto 2.0 ML. We compared the stability of the fluorinated surface. The results were compared with existing experimental and theoretical results. The reaction of water with HF treated Si surface is monitored. It produces, as a first step, the exchange of Si-F with water to form Si-OH groups reducing the concentration of the fluorine on the surface, followed by a rapture of Si-Si bonds and finally the Si-O-Si bridge formation in the lattice.