A catheter assembly (20) and method is disclosed which comprises a catheter (22) having a coating on at least a part of its length intended to produce a low- friction surface on the catheter when treated with an activating substance in the form of a vapor. The catheter assembly (20) also includes a cathcter package (24) forming an interior space divided by a gas permeable, liquid impermeable barrier (28) into a first cavity (26a) and a second cavity (26b). The first cavity (26a) of the catheter package accommodates the catheter therein and the second cavity (26b) accommodates at least a quantity of liquid (30) in its liquid phase therein. The liquid (30) in the second cavity can change phase into a vapor capable of passing from the second cavity, through the barrier (28), and into the first cavity (26a) where the vapor can activate the coating. As a result, the vapor produced when the liquid changes phase causes the coating on the catheter to be activated to thereby produce the low-friction surface on the catheter (22) so it is ready-to-use when it reaches the end user.