In the recent years, many researchers have been interested in nanoparticles because of their unique properties. In this study, a method for producing ZnO nanoparticle colloids is proposed. The colloids were characterized by spectroscopic analyzer. By absorption spectrum study, we found out that colloids were consisted of nanoparticles with less than 10 nanometer size. The quantum confinement effect in these spectrums was recognized through blue shift of onset absorption wavelengths. These wavelengths shift from 370 nm to 340 nm by decreasing the particles size. Transmittion electron micrographs showed formation of zinc oxide nanoparticles.