Described is an integrated process for producing ethanol from acetic acid in which the water from ethanol production is used to control water balance in the acetic acid production. In one embodiment, the invention comprises carbonylating methanol in a carbonylation system in the presence of a carbonylation catalyst under conditions effective to form acetic acid, hydrogenating the acetic acid in a hydrogenation system in the presence of a hydrogenation catalyst to form a crude ethanol product comprising ethanol and water, separating the ethanol from the water to form an ethanol stream and a water stream, and directing at least a portion of the water stream to the carbonylation system, e.g., for use in the carbonylation reaction medium.