This study investigates the use of law-temperature catalytic oxidation for the removal of H2S from tail gases originating from geothermal plants, with special focus on the effect of water on the overall performance of the activated carbon catalyst. It is shown that water strongly influences the reaction rate and the total amount of sulfur that can be adsorbed on the catalyst prior to regeneration. It is suggested that the reaction takes place in a thin water layer, inside the carbon pores, from the reaction of dissolved H2S with chemisorbed oxygen.