The electrorheological (ER) behavior of suspensions in silicone oil of silica gel powder (average particle size 49 $mu$m) absorbed water was investigated at room temperature with electric fields up to 2.4 KV/mm. In this paper, for development of succcessful ER fluids used for wide temperature range later, we would like to know a fundamental understanding of water on ER effect. As a first step, the ER fluids involving water activated silica gel were measured not only the electrical characteristics such as dielectric constant, current density and electrical conductivity but also the rheological properties on the strength of electric field, the quantity of dispersed phase and absorbed water. From the experimental results that water absorbed to the particles directly affects to the surface charge density of electric double layer model proposed by Schwarz and makes dielectric constant and current density of ER fluids increase. The current density and dynamic yield stress $($ au$_y)$</TEX> of water activated silica gel suspensions was in exponential proportion to the strength of electric field, the quantity of dispersed phase and absorbed water. And the optimum water quantity and weight concentration of silica gel for electrorheological effect were 4-5 wt% and 15 wt%, respectively.