We investigate the usefulness of density functional theory (DFT) for calculating excited state potential energy surfaces. In the DFT calculations, the generalized gradient approximation (GGA) is used. As a test case, the photodissociation of H2O through the first excited (A) over tilde B-1(1) state was considered. Two-dimensional potential energy surfaces were obtained for both the (X) over tilde (1)A(1) ground state and the first excited state. Wave packet calculations employing these surfaces were used to obtain both the absorption spectrum and partial photodissociation cross sections, which are resolved with respect to the final vibrational state of the OH fragment. Comparisons are made with a previously calculated high level ab initio potential energy surface, with dynamics calculations using that surface, and with experiment. The vertical excitation energy for the ((X) over tilde (1)A(1)--> (A) over tilde B-1(1)) transition calculated using DFT is in good agreement with the previous ab initio calculations. The absorption spectrum and the partial cross sections obtained with the DFT treatment are in good agreement with experiment.