Abstract: This invention discloses novel water-responsive compositions with improved stability to aqueous liquids and an improved method of making the compositions. The addition of organically modified clay to poly(ethylene oxide) significant improves the liquid stability and melt processability of the PEO. The PEO compositions can be produced using an economical one step process comprising blending a dry mixture of PEO and organically modified clay particles and melt processing the dry mixture. The melt processing of a mixture of PEO and organically modified clay particles facilitates the melt processing of PEO over a broad range of molecular weights, most notably high molecular weights. Advantageously, the process described herein eliminates expensive and complex processing steps and is useful for manufacturing flushable articles such as disposable diapers, feminine pads, pantiliners, etc.