PURPOSE: To effectively prevent the nodular corrosion in the title alloy by uniformly dispersing an Fe-contg. intermetallic compound to the whole structure of a Zr-based alloy.

CONSTITUTION: An intermetallic compound contg. Fe and having 0.17W0.01mm grain size is uniformly dispersed into a Zr-based alloy for a light water reactor. As the intermetallic compound, the one contg. Zr and Fe, the one contg. Zr, Fe and Cr, the Zr (Cr,Fe)2 type-one, etc., are used. At the time of using the Zr-based alloy in a nuclear reactor, as the initial stage, Fe forms solid solution into the matrix of the Zr-based alloy and a precise acidic film having excellent corrosion resistance and uniform thickness is generated to suppress nodular corrosion and to suppress the generation and growth of a porous oxidizing film. Since the corrosion resistance of the alloy is improved as radiation proceeds, it is effective for a fuel having high burning degree which is burnable for a long period of time.