Ligand-stabilised, water-soluble gold nanoparticles of two different size ranges (2–4 and 5–8 nm) are readily prepared using monohydroxy (1-mercaptoundec-11-yl) tetraethylene glycol as a novel capping agent. These nanoparticles are as stable as alkylthiol-capped monolayer protected clusters (MPCs) and do not aggregate from aqueous solution under a wide range of stringent conditions. It is expected that this new material will be useful for a number of bio-analytical applications.