A two-phase flow experiment using air and water-based gamma-Al(2)O(3) nanofluid was conducted to observe the basic hydraulic phenomenon of nanofluids. The local two-phase flow parameters were measured with a conductivity double-sensor two-phase void meter. The void fraction, interfacial velocity, interfacial area concentration, and mean bubble diameter were evaluated, and all of those results using the nanofluid were compared with the corresponding results for pure water. The void fraction distribution was flattened in the nanofluid case more than it was in the pure water case. The higher interfacial area concentration resulted in a smaller mean bubble diameter in the case of the nanofluid. This was the first attempt to measure the local two-phase flow parameters of nanofluids using a conductivity double-sensor two-phase void meter. Throughout this experimental study, the differences in the internal two-phase flow structure of the nanofluid were identified. In addition, the heat transfer enhancement of the nanofluid can be resulted from the increase of the interfacial area concentration which means the available area of the heat and mass transfer.