A study was made on a two-stroke-cycle spark ignition engine which was fueled with methanol containing water with a mixture ratio of 0, 10 and 20% by volume. Experiments were carried out at various ignition timings and excess air ratio under a constant delivery ratio and a constant speed. Ignition timing of MBT with neat methanol is about 30 degrees BTDC. With increasing water content ratio, the ignition duration which is a period from igniton point to specific burning weight ratio of 10% is increased. Consequently, the MBT is shifted to advanced timing. Even with 20% water content, the engine can run with about the same power level and efficiency at each MBT.