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CeO₂ catalysts were prepared by a precipitation method using either (NH₄)₂Ce(NO₃)₆ or Ce(NO₃)₃, as Ce^IV or Ce^III precursors respectively. The influence of the different precursors on catalytic activity was evaluated for the total oxidation of propane with water present in the feed. The catalyst prepared using the Ce^IV precursor was more active for propane total oxidation. The choice of precursor influenced catalyst properties such as surface area, reducibility, morphology, and active oxygen species. The predominant factor associated with the catalytic activity was related to the formation of either CeO₂.nH₂O or Ce₂(OH)₂(CO₃)₂.H₂O precipitate species, formed prior to calcination. The formation of CeO₂.nH₂O resulted in enhanced surface area which was an important factor for controlling catalyst activity.