A petrographic, geochemical, and oxygen isotopic study of the Bali CV3 carbonaceous chondrite revealed that the meteorite has undergone extensive deformation and aqueous alteration on its parent body. Deformation textures are common and include flattened chondrules, a well-developed foliation, and the presence of distinctive (100) planar defects in olivine. The occurrence of alteration products associated with the planar defects indicates that the deformation features formed prior to the episode of aqueous alteration. The secondary minerals produced during the alteration event include well-crystallized Mg-rich saponite, framboidal magnetite, and Ca-phosphates. The alteration products are not homogeneously distributed throughout the meteorite, but occur in regions adjacent to relatively unaltered material, such as veins of altered material following the foliation. The alteration assemblage formed under oxidizing conditions at relatively low temperatures (<100 degrees C). Altered regions in Bali have higher Na, Ca, and P contents than unaltered regions which suggests that the fluid phase carried significant dissolved solids. Oxygen isotopic compositions for unaltered regions in Bali fall within the field for other CV3 whole-rocks, however, the oxygen isotopic compositions of the heavily altered material lie in the region for the CM and CR chondrites. The heavy-isotope enrichment of the altered regions in Bali suggest alteration conditions similar to those for the petrographic type-2 carbonaceous chondrites.