CO2 could be transported by pipelines in gaseous liquid or supercritical phase according to the operating temperature and pressure. Safety concerns might arise from supercritical CO2 transportation pipeline especially at the densely populated areas. Short-distance gaseous CO2 pipeline was designed and constructed for an energy company. Water content is critical to understand the corrosion mechanism of CO2 pipeline. Corrosion behavior of X65 mild steel exposed to CO2 stream with different relative humidity (RH) was investigated by weight-loss method to determine maximum allowable water content in CO2 pipeline operating at different temperature and pressure conditions. The surface morphology and the chemical composition of the corrosion products were examined by scanning electron microscopy (SEM) and energy dispersive spectroscopy (EDX). The results showed that general corrosion rate was stable with increased RH before a separate water phase was observed and significantly increased when free water appeared for all the test conditions. Localized corrosion was initiated when the relative humidity was beyond 60%. The upper limit of water content for CO2 stream should be set at 60% RH for the safety concern of X65 pipeline on the basis of corrosion study.Keywords: CO2 corrosion water content upper limit pipeline