A tubular water reactor fuel cladding having an outer cylindrical layer composed of a conventional zirconium base alloy. Bonded to the outer layer is a second, inner layer composed of an alloy consisting essentially of: 0.1 to 0.3 wt.% tin; 0.05 to 0.2 wt.% iron; 0.05 to 0.4 wt.% niobium; 0.03 to 0.1 wt.% of either chromium or nickel, alone or in combination with each other; while keeping the sum of the iron, chromium and nickel contents below 0.25 wt.%; 300 to 1200 ppm oxygen; and the balance essentially zirconium. The inner layer is characterized by excellent resistance to PCI crack propagation, excellent aqueous corrosion resistance and a fully recrystallized microstructure.
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