CdTe quantum dots (QDs) were synthesized in aqueous solution using thioglycolic acid (HS-CH2COOH, TGA) as a stabilizer. The phenomenon of "on" and "off" luminescence intermittency (blinking) of CdTe QDs in PVA and trehalose was investigated by single-molecule optical microscopy, and we identified that the intermittencies of single QDs were correlated with the interaction of water molecules absorbed on the QD surface. The "off' times, the interval between adjacent "on" states, remained essentially unaffected with an increase in excitation intensity. Every QD showed a similar power law behavior for the "off" time distribution regardless of the excitation intensity and aqueous environment of the QDs;. In the case of "on" time distribution, power law behavior with an exponential cutoff tail is observed at longer time scales. The time traces indicated that the "on" time was inversely proportional to the excitation intensity; the duration of "on" time became shorter with increasing excitation intensity. An increase in the duration of "on" time was observed in trehalose with respect to that in PVA. We obtained a clear decrease in the power law exponent when PVA was replaced with trehalose. These observations indicate that the luminescence blinking statistics of water-soluble single CdTe QDs is significantly dependent on the aqueous environment, which is interpreted in terms of passivation of the surface trap states of QDs.