The reduction of NO by CO was studied on gold catalysts supported on ceria-alumina, prepared by mechanochemical activation. The samples were characterized by means of XRD, TPR, XPS and Raman spectroscopy. The influence of water in the feed on the catalytic activity was evaluated as well. It was established that the addition of hydrogen and water improves NO reduction activity by CO. The role of water was connected to the hydrogen production by WGS. The role of oxygen vacancies created in ceria structure in the presence of alumina was also discussed. The 100% selectivity to N-2 at about 200 degrees C was kept in all cases of catalytic measurements, making the studied gold catalysts promising for practical application. (C) 2007 Elsevier B.V. All rights reserved.