What causes water blisters on feet which pop and peel?

Athletes Foot: More then likely it is athletes foot which is a form of skin fungus. Try using an antifungal cream. Using antifungal powders in your shoes and changing sock twice a day can help with moisture.

See a dermatologist: Dyshidrotic dermatitis is another possible cause. Sometimes it is allergy to rubber or leather.

It could be...: Athlete's foot. The best otc medication (in my opinion) is lotrimin (clotrimazole) ultra. Dilute vinegar soaks are good as well. Dry the inside of your shoes by placing them up-side down over an air return vent at home overnight. If this doesn't make things better in a couple days, see a podiatrist.