This study was to investigate the effects of water induction through the air intake system on the characteristics of combustion and exhaust emissions in an IDI diesel engine. The fuel injection timing was also controlled to investigate a method for the simultaneous reduction of smoke and NOx when water was injected into the combustion chamber. The formation of NOx was significantly suppressed by decreasing the gas peak temperature during the initial combustion process because the water played a role as a heat sink during evaporating in the combustion chamber, while the smoke was slightly increased with increased water amount. Also, NOx emission was significantly decreased with increase in water amount. A simultaneous reduction in smoke and NOx emissions was obtained when water was injected into the combustion chamber by retarding more 2$^{circ}C$A of the fuel injection timing than without water injection.