The structures of the cyclic water pentamer, the H3O+(H2O)3OH- zwitterion, and the H3O(H2O)3OH biradical form of the (H2O)5 cluster have been determined with the second-order Møller-Plesset method and with density-functional theory (DFT). The vertical singlet excitation energies of these structures have been calculated with the second-order approximated coupled-cluster method and with time-dependent DFT, respectively. The molecular and electronic structures of the H3O(H2O)3OH biradical have been characterized for the first time. The lowest electronic states of the biradical are slightly lower in energy than the vertically excited states of the covalent and zwitterionic (H2O)5 clusters and therefore are photochemically accessible from the latter. The electronic absorption spectrum of the biradical exhibits the characteristic features of the absorption spectrum of the hydrated electron. It is argued that the basic mechanisms of the photochemistry of water, in particular the generation of the hydrated electron by UV photons, can be unraveled by relatively straightforward electronic structure and dynamics calculations for finite-size water clusters.