Traditionally the concrete reinforcing bars are produced by hot rolling process. However, some of the technologies use on-line water quenching systems to regulate the microstructure to achieve better mechanical properties. The chemical composition and the resultant microstructure depend upon the bar manufacturing technology and hence may influence the corrosion behavior of the bars. Previous studies conducted to evaluate the extent and mechanism of bar corrosion generally used the conventional hot rolled material with little information about the corrosion behavior of water quenched steel bars. This paper compares the corrosion behavior of the water quenched steel bars both in and outside concrete with that of conventional hot rolled bars. It is noted that while the water quenched steel bars develop early surface rusting in humid atmosphere, their corrosion resistance is better than that of conventional hot rolled material.