In recent years, defect engineering of titania via reduction treatments has shown a high promise for enabling efficient and co-catalyst-free photocatalytic H2 generation from methanol/water solutions. However defect engineering alters several properties of TiO2 simultaneously. Here we use pristine (white) and hydrogenated (grey) anatase nanosheets with dominant (001) facets and by comparing electrical conductivity, photocurrent spectra, transient photocurrent response, and photocatalytic H2 evolution, we show that the increased conductivity or broad visible light absorption of grey titania are not responsible for its increased activity. Instead, the true bottleneck is the hole transfer rate that is significantly accelerated when using the grey instead of the white modification. Moreover, the hole transfer reaction leads to accumulation of the reaction products in pure water, which causes hindering of the photocatalytic H2 evolution over time. These combined factors explain the superior performance of grey titania over white titania in photoelectrochemical or photocatalytic water splitting.