We use network coding based on coded cooperation for the Two-Way Relay channel, where two nodes communicate with each other assisted by a third, relay node. We consider the time-division two-way relay channel without power control, which means the two users and the relay use the same transmission power. Using the proposed network coding approach, channel codes are used at both users and network coding is used at the relay. It is shown via simulation that the proposed scheme provides substantial coding gain in fading channels.