The gas phase proton transfer process in 1,2,4-triazolium dinitramide (TD) was studied using second-order perturbation theory to determine how the presence of one and two water molecules modifies the potential energy surface that connects the ion pair to the neutral pair. The presence of one water molecule can introduce small proton transfer energy barriers that separate the ion pair from the lower-energy neutral pair. These energy barriers are easily surmounted. Reaction paths were determined for single proton transfers and double proton transfers via one water molecule. In the presence of two water molecules, the global minimum is an ion pair, as are most of the lower-energy local minima. Energy barriers for single, double, and triple proton transfers were also found for TD in the presence of two water molecules. One TD ion pair structure with two water molecules has no corresponding neutral pair energy minimum. A quasi-atomic orbital analysis is used to understand the nature of the bonding in the various species studied in this work.