The reactivity of a ceria-rich Ce0.85Zr0.15O2 solid solution towards the thermochemical water splitting process (TWS) was studied over repeated H2/H2O redox cycles. The structural and surface modifications after treatment at high temperature under air or N2 atmospheres were characterized by High-Resolution Transmission Electron Microscopy (HRTEM), X-ray diffraction (XRD), Raman spectroscopy, X-ray Photoemission Spectroscopy (XPS) and Positron Annihilation Lifetime Spectroscopy (PALS). Samples treated under nitrogen resulted more active due to phase segregation with formation of a zirconyl oxynitride phase in catalytic amount. Insertion of N 3into the structure contributes to increase the numbers of oxygen vacancies that preferably arrange in large clusters, and to stabilize Ce 3+ centers on the surface. In comparison, treatment under air resulted in a different arrangement of defects with less Ce 3+ and smaller and more numerous vacancy clusters. This affects charge transfer and H-coupling processes, that play an important role in boosting the rate of H2 production. The behavior is found to be only slightly dependent on the starting ceria-zirconia composition and it is related to the development of a similar surface hetero-structure configuration, characterized by the presence of at least a ceria-rich solid solution and a (cerium-doped) zirconyl oxynitride phase, which is supposed to act as a promoter for TWS reaction. The above findings confirm the importance of a multi-phase structure in the design of ceria-zirconia oxides for water splitting reaction and allow a step forward to find an optimal composition. Moreover, the results indicate that doping with nitrogen might be a novel approach for the design of robust, thermally resistant and redox active materials. All these findings suggest new approaches for the development and design of ceria based materials for the two-step water splitting reaction and highlight the importance of engineering the surface defect structure/configuration of the material to obtain an efficient catalyst. In this regard, the role and the impact of nitridation process need to be further investigated.