The reactivity of AlN powder in an aqueous environment was studied by measuring the pH and the temperature during the hydrolysis of the powder at room and elevated temperatures. The influences of the powder concentration and the starting pH of the slurry were also investigated. The results of the measurements at room temperature show that there is an incubation time before the start of the AlN hydrolysis reactions. Once this incubation time is over, the pH and the temperature of the slurry start to increase, indicating the onset of the reactions. A higher starting temperature not only speeds up the reaction of the AlN powder with water, but it also shortens the incubation time. In addition, the starting temperature influences the morphology of the reaction product: at temperatures below 60 °C, the final product of the hydrolysis is crystalline Al(OH)3, whereas at higher temperatures (above 60 °C), crystalline AlOOH is formed. At very low pH values (pH = 1), the reaction of AlN powder with water is prevented (i.e., the incubation time is very long), whereas in an alkaline environment, the incubation time is approximately the same as in distilled water, but the reaction is accelerated.