ASTM has a standard, E-1003, for hydrotest, which clearly specifies that New systems should

be tested prior to painting, where practical.

The responses posted by Mr Arunachalam cites several discussions and replies on the same
issue. Ive also attached the gist of the article by J.E.Batey, which was published in, ASNT
journal materials evaluation.

If you look at ASME Sec-VIII,DIV-1,UG-99,(see below):-

(k) Vessels, except for those in lethal service, may be painted or otherwise coated either
internally or externally, and may be lined internally, prior to the pressure test. However, the user
is cautioned that such painting /coating /lining may mask leaks that would otherwise have been
detected during the pressure test. The above sentence implies do it at your risk and be ready
for the consequences. ASME as a code have to be fabricator friendly, but for Lethal Services
failures due to suggested wrong practices would mean liability. However at the same time
fabricator have to exercise judgement and good engineering practice.

Depending on the type of paints used, paints will have tendency to mask defects or hinder
meaningful inspection. If the vessel or piping is subject to PWHT, any defect noted during
hydrotest, would call for repair and re-stress relieve, the time and money spent on rework may
out-weigh your initial gain.

Generally in North American utilities (Nuclear) painting before hydro test is not an accepted
practice. The same guidelines are followed by large oil Companies also. An extract from such a
specification :-

Hydrostatic pressure testing shall be performed prior to the application of paint or other protective
coatings to the welds and heat affected zones, unless otherwise approved by the Principal.

I would say, given a choice painting shall always be done after hydro test. If the project is
a rush and time is a constraint, painting of piping or vessel may be done, leaving welds and at
least 2 on each side as unpainted during hydrotest, which would be painted following
hydrotest.