  We present an integrated thermal-chemical model for the atmosphere of the
inner region of a protoplanetary disk that includes irradiation by both far
ultraviolet (FUV) and X-ray radiation. We focus on how the photodissociation of
water and OH affects the abundances of these and related species and how it
contributes to the heating of the atmosphere. The dust in the atmosphere plays
several important roles, primarily as the site of H$_2$ formation and by
absorbing the FUV. Large amounts of water can be synthesized within the inner 4
AU of a disk around a typical classical T~Tauri star. OH is found primarily at
the top of a warm region where the gas temperature is $T_g \approx 650 - 1000$
K and water below it where the temperature is lower, $T_g \approx 250 - 650$ K.
The amounts of water and OH and the temperatures of the regions in which they
formed are in agreement with recent Spitzer measurements and support the notion
of it in situ production of water in the inner regions of protoplanetary disks.
We find that the synthesized water is effective in shielding the disk midplane
from stellar FUV radiation.
