An anode electrode for use in a fuel cell comprises a stacked structure including, in sequence: a catalyst layer, a hydrophobic, microporous layer (“MPL”), a porous gas diffusion layer (“GDL”), and an anode plate with at least one recessed fuel supply-fuel/gas exhaust channel formed in a surface thereof facing the GDL, wherein the stacked structure further comprises at least one hydrophobic region aligned with the at least one recessed channel. The electrode is useful in direct oxidation fuel cells and systems, such as direct methanol fuel cells operating with highly concentrated liquid fuel.