Abstract: Apparatus and method for water atomizing molten metal to provide a low oxygen metal powder. A molten metal stream is introduced to an atomization vessel containing a pressurized inert gas. The metal stream is atomized, by impingement of high pressure water within the atomization vessel. The atomization vessel has an exit aperture located so that the slurry of water and metal powder can exit from the atomization vessel only after deflection within the atomization vessel. Inert gas contained within the atomization vessel and entrapped within the slurry during atomization begins to leave the slurry during deflection, the inert gas returning to the atomization vessel atmosphere. The inert gas removal process continues after passage through the exit aperture and entrance into a closed degassing vessel.