The synthesis of dimethyl ether (DME) from biomass-derived model synthesis gas has been investigated on Cu-ZnO-Al2O3/Zr-ferrierite bifunctional catalysts. The catalysts are prepared by co-precipitation. impregnation method using Na2CO3, K2CO3 and (NH4)2CO3 as the precipitants. The catalytic activity tests reveal that the best yield of DME can be obtained on the catalyst precipitated by using (NH4)2CO3. Detailed characterization studies conducted on the catalysts to measure their properties such as surface area, acidity by temperature-programmed desorption of ammonia (NH3-TPD), reducibility of Cu oxide by temperature-programmed reduction (TPR), transmission electron microscope (TEM), X-ray photoelectron spectroscopy (XPS) and copper surface area and particle size measurements by N2O titration method. Increasing the number of moderate acidic sites and facilitation of easily reducible copper species with small particle size are found to be the prime reasons for the superior functionality of the (NH4)2CO3 precipitated catalyst. The usage of (NH4)2CO3 also leaves no residual ions, whereas the presence of residual K+ and Na+ ions in the case of K2CO3 and Na2CO3 precipitated catalysts leads to lower activity and selectivity.