Surface modification of carbon nanotubes with polyvinyl alcohol (PVOH) showed detection for humidity variation implying a possible application as a nanoscale humidity sensor. Wettability studies on single-wall, Y junction single wall and multiwall carbon nanotubes revealed that these nanotubes tend to become highly hydrophilic surfaces by this functionalisation. From the raman analysis it was determined that the majority of the nanotubes in our Y-junction single wall nanotubes were semiconducting in nature. The conductivity studies revealed that the Y junction nanotubes with PVOH functionalisation show large change in conductivity for varying relative humidity (RH). We propose a possible charge transport mechanism in these functionalized nanotubes.