In recent years there have been many reported cases of corrosion failure in cement concrete pipelines. In the majority of cases, the failures have been attributed to rebar corrosion which is caused by the permeability of chloride from low resistivity soil and subsequent attack on a passive layer on an iron bar in the structure. As a possible alternative to cementitious materials, some organic coatings based on olefin, vinyl or epoxy-based polymers have been considered. However, due to a paucity of data on the behavior of these coatings in aqueous media-particularly product water the possibility of their application in water transmission systems in the Kingdom has not been fully exploited. This paper deals with the studies carried out on the corrosion and mechanical behavior of fusion bonded epoxy (FBE) coating on steel in aqueous media which include product water, distilled water and saline water. The mechanical testings on coating include adhesion, bending and cathodic disbondment testings. The corrosion studies include immersion testing under static and dynamic conditions, autoclave tests and accelerated (salt-fog) tests. The analysis of results indicates chemical inertness of FBE coating in either of the aforementioned water used during testing, good adhesion and no damage to the coating during bending. Cathodic disbondment tests indicate that FBE coating sustains under cathodic protection (CP) conditions. In general, the results of mechanical and corrosion tests indicate that FBE is a promising material for internal coating on steel in water transmission systems.