Abstract: An indigenous aqueous stream can be treated and then recycled, with a suitable donor solvent, to a coal liquefaction zone to catalyze the reaction. In one embodiment, an aqueous fraction is separated from a coal liquefaction zone effluent, a quinone solids portion of the separated fraction is concentrated within the liquid by evaporation of water therefrom to form a slurry, and the slurry is then recycled to the coal liquefaction zone to catalyze the coal liquefaction reaction. Naturally occurring phenols and alkyl substituted phenols, also found within the aqueous stream, can also be converted to quinones, if desired, by a chemical reaction which favors the addition of hydroxyl consitutents to the phenols to form dihydroxy benzenes. Quinones, as disclosed in copending Applications Ser. No. 686,813 now U.S. Pat. No. 4,049,536; Ser. No. 686,814 now U.S. Pat. No. 4,049,537; Ser. No. 686,827 now U.S. Pat. No. 4,051,012 and Ser. No. 686,828, K. W.