The novel water-soluble ruthenium(II) complexes [RuCl(2)(eta(6)-arene)[P(CH(2)OH)(3)]]2a-c and [RuCl(eta(6)-arene)[P(CH(2)OH)(3)](2)][Cl]3a-c have been prepared in high yields by reaction of dimers [[Ru(eta(6)-arene)(micro-Cl)Cl](2)](arene = C(6)H(6)1a, p-cymene 1b, C(6)Me(6)1c) with two or four equivalents of P(CH(2)OH)(3), respectively. Complexes 2/3a-c are active catalysts in the redox isomerization of several allylic alcohols into the corresponding saturated carbonyl compounds under water/n-heptane biphasic conditions. Among them, the neutral derivatives [RuCl(2)(eta(6)-C(6)H(6))[P(CH(2)OH)(3)]]2a and [RuCl(2)(eta(6)-p-cymene)[P(CH(2)OH)(3)]]2b show the highest activities (TOF values up to 600 h(-1); TON values up to 782). Complexes 2/3a-c also catalyze the hydration of terminal alkynes.