Abstract: This invention relates to a water-based coating composition in which solvent or water popping and sagging are eliminated or substantially reduced. The composition comprises a thermosetting, film-forming organic binder dispersed in an aqueous medium containing from 60 to 100 parts by weight of water and 0 to 40 parts by weight of a volatile organic solvent. The organic binder is formulated from (a) and acid-containing interpolymer adapted to be dissolved or dispersed in water with the acid of a base; (b) a water-soluble or water-dispersible polyether polyol or polyester polyol having a molecular weight of at least 300 and (c) a water-soluble or water-dispersible aldehyde condensation resin. The interpolymer consists essentially of a carboxylic acid amide in units of the structure: ##STR1## wherein R' is hydrogen or lower alkyl and R is lower alkyl; an alpha, beta-ethylenically unsaturated carboxylic acid; and at least one other monomer containing a CH.sub.2 =CH< group.

Abstract: This invention relates to a water-based coating composition in which solvent or water popping and sagging are eliminated or substantially reduced. The composition comprises a thermosetting, film-forming organic binder dispersed in an aqueous medium containing from 60 to 100 parts by weight of water and from 0 to 40 parts by weight of a volatile organic solvent. The organic binder is formulated from (a) an acid-containing interpolymer adapted to be dissolved or dispersed in water with the aid of a base and (b) a water-soluble or water-dispersible polyether polyol or polyester polyol having a molecular weight of at least 300.