A technique has been developed for preparing stable, film‐forming, polyurethane latices without the use of emulsifying agents. The reaction of an alkyl diethanolamine with a stoichiometric excess of an isocyanate terminated prepolymer yields a relatively low molecular weight urethane which is readily dispersed with 3% aqueous acetic acid. When small amounts of triethanolamine are employed as a third reactant, the selfemulsifiable urethane is branched. In either case, water diffuses into the suspended globules of the latex and chain‐extends the urethane to a linear or crosslinked high polymer via reaction with isocyanate endgroups. Upon drying, the creamy, white latices yield strong, elastic films which exhibit low swelling when immersed in water for extended periods. Cationic polyurethane latices were prepared from both polyester‐ and polyether‐based materials, and, in general, the expected structure–property relationships were obtained. A major stabilizing factor in these polyurethane latices is the positive charge on the particles arising from the tertiary amine salts. The latices were compatible with nonionic pigmenting and thickening agents, and they could be blended with a nonionic poly(vinyl acetate) emulsion.