Conversion of DME (dimethyl ether) or methanol to light olefins (ethylene, propylene, butenes) over SAPO-34 were systematically studied, where it was observed that DME was dehydrated to light olefins and partially converted to by-products such as CO and CO2 at various reaction temperatures on the time-on-stream. SAPO-34 catalyst during the DTO (dimetyl ether-to-olefins) reaction was significantly deactivated compared with MTO (methanol-toolefins) reaction. By addition of water to the reaction feed, the yield to light olefins was not only increased, but the life time of the catalyst was also prolonged by the suppression of the coke formation by steam.