A system is provided for removing arsenic from water to safe levels at or below the EPA standards. The system is a hybrid spouted vessel/fixed bed filter system that significantly enhances/improves arsenic removal for drinking water using zero-valent iron (ZVI) particles. Movement of the circulating, iron-containing particles in a dense moving bed that forms on the spouted vessel bottom creates an abrasive “self-polishing” action among them that continuously generates colloidal iron corrosion products. This material then circulates with the water in the vessel and is removed and concentrated in a fixed bed filter. The colloidal material captured and immobilized in the filter has been shown to remove arsenic from contaminated water at very rapid rates.