The peptization process of titania gel in acidic aqueous media has been utilized for the dispersion and modification of carbon nanotubes (CNTs) in water, up to single tube level. Agglomerates and bundles of CNTs were first treated with titania precursors using a controlled adsorption process, and then the carbon nanotubes were exposed to acid moistures for forming titania gels on the surface of CNTs. Subsequently, the composite of titania and CNTs was introduced to aqueous media for the peptization of titania gel agglomerates. With the progressing of the peptization process (i.e., destruction of the titania gel agglomerates and redispersion into primary grains), these agglomerated CNTs were "drawn" apart from each other to form individual suspensions.