The reaction mechanism of Co+ (5F,3F) with H2O has been studied by the ab initio multireference-based theory (MR–SDCI and MC–QDPT) and the density functional theory (B3LYP and BLYP). In the energetics derived by the MR–SDCI(+Q) plus the B3LYP zero-point vibrational energy, the ion–dipole complex, CoOH2+, is initially formed with the binding energy of 38.2 (triplet) and 34.1 (quintet) kcal/mol, which is the most stable complex in the respective potential energy surfaces. Then, Co+ activates one O–H bond of H2O, leading to the insertion complex, HCoOH+. There are three possible dissociation channels from HCoOH+, i.e., →CoOH++H, →CoH++OH, and →CoO++H2. The third dissociation is expected to occur through the transition state of a four-centered structure, with the activation barrier of 61.6 (triplet) and 49.2 (quintet) kcal/mol, although this dissociation has not been detected in the experiment. The ground state of CoO+ is predicted to be Δ,5 and the lowest triplet state is Γ3 with the energy level of 20.8 kcal/mol above. The B3LYP provides the energetics qualitatively similar to the MR–SDCI(+Q) ones through the reactions, with the maximum deviation of 13 kcal/mol. The calculated results are consistent with experimental observations.