Magnetic Zn1−xCoxO nanorods were fabricated via direct hydrothermal synthesis. The measurements of x-ray diffraction, x-ray photoemission spectroscopy, and optical absorption spectra demonstrate the presence of cobalt in the +2 state in a tetrahedral crystal field, which indicates that Co ions have been doped into the nanorods. The observations of morphology and microstructure reveal that the Zn1−xCoxO nanorods grow along the [0002] direction through Ostwald ripening not only competing with but being assisted by oriented attachment. The field dependence of magnetization (M-H curves) of the Zn1−xCoxO nanorods measured at 300K shows their ferromagnetic characteristics. The coercive fields (Hc) were obtained to be 98 and 36Oe for nominal x=0.029 and 0.056, respectively. Our experimental results provide one effective method for fabrication of transition metal doped ZnO nanostructures with room-temperature ferromagnetism by direct chemical synthesis.