Drilling is a semi-enclosed cutting process. Drilling of difficult-to-machine materials generates thermal/frictional damage at the cutting edges of drill bit and decreases the life. In this paper, a new cooling and lubricating technique in drilling difficult-to-machine materials is developed to improve the life of drill bit. For this study, a water vapor generator and feeding system is developed. Comparative experiments are performed for various difficult-to-machine materials under the conditions of oil water emulsion, water vapor as coolant and lubricant and dry drilling, respectively. The effectiveness of water vapor on the basis of drill bit wear is studied. Experimental results show that with water vapor as coolant and lubricant the flank wear is reduced by 45-80% and 10-15% in comparison with dry drilling and oil water emulsion, respectively.