This paper studies the differences due to the wall effect in propeller open water(POW) characteristics tested in a towing tank and in a medium size cavitation tunnel(CT). When the advanced velocity of the propeller is defined as the flow velocity measured in the plane of propeller, POW characteristics resulting from CT has a better relationship with them of towing tank. To obtain the wall effect in the propeller plane, numerical computation using the lifting panel theory is performed with and without the wall around a propeller. Then, POW results in CT are corrected based on the wall effect from numerical results. The POW results obtained from this procedure show a better agreement with the experimental results in the towing tank.