Abstract: A process for preparing a water-soluble alkyd resin, which comprises(1) reacting(i) at least one of(a) a 1,2-epoxyalkane containing 6 to 28 carbon atoms,(b) a straight-chain internal epoxyalkane containing 6 to 20 carbon atoms,(c) a mixture of one or more of the 1,2-epoxyalkane (a) and/or the internal epoxyalkane (b), or(d) a mixture of one or more of the 1,2-epoxyalkane (a) and/or the internal epoxyalkane (b) and an unsaturated fatty acid containing 12 to 18 carbon atoms in a molar ratio of about 4:1 to about 2:1 of the 1,2-epoxyalkane (a) and/or the internal epoxyalkane (b) to the unsaturated fatty acid;with(ii) at least one of(a') an aromatic carboxyl compound selected from the group consisting essentially of phthalic anhydride, isophthalic acid, terephthalic acid, an ester of isophthalic acid and an ester of terephthalic acid,(b') a mixture of two or more of the aromatic carboxyl compounds (a'), or(c') a mixture of one or more of the aromatic carboxylic compounds (a') and an aliphatic dicarboxylic acid ha