Single crystal films of n-type 3C-SiC were hydrothermally processed at pressures ranging from 10 to 70 MPa at 550°C. To study the effects of initial thin film microstructure on hydrothermal processing, two different samples of CVD-grown SiC were studied: one, 200 nm thick, contained low angle boundaries and a high density of planar defects; the other, 3500 nm thick, was planar and contained relatively few defects. Raman Spectroscopy, X-Ray Photoelectron Spectroscopy (XPS), Scanning Electron Microscopy (SEM) and Transmission Electron Microscopy (TEM) were used to study the chemistry and microstructure of the SiC material both before and after hydrothermal treatment. This study reveals that low temperature (T=550°C) oxidation of single crystal epitaxial SiC is possible but that the resulting oxide film microstructure is strongly dependent on the initial film microstructure and oxidation is greatly enhanced along low angle grain boundaries and on planar defects.