Cationic polyelectrolytes showing an upper critical solution temperature (UCST) are synthesized by reversible addition‐fragmentation chain transfer (RAFT) polymerization in water at a temperature well above the UCST. The polymerization is well controlled by the RAFT process, with excellent pseudo‐first‐order kinetics. The cloud point is highly dependent on the polyelectrolyte concentration, molecular weight, and presence of added electrolyte. Alkylation of a neutral polymer is also conducted to obtain polyelectrolytes with different hydrophobic groups, which are shown to increase the cloud point.