Abstract: Aqueous coating compositions without abnormal viscosity characteristic upon dilution with water are described. The coating compositions comprise (A) a resinous component which is a physical or chemical blend of a water-insoluble film-forming polyhydroxy compound having an acid value below about 10 mg KOH/g and a hydroxy number between about 50 and 650 mg KOH/g, and a film-forming polycarboxylic compound having an acid number from between about 30 and 280 mg KOH/g; the ratio of carboxy groups to hydroxy groups being 1 : 2 to 1 : 25 and the carboxy group at least partly neutralized with a nitrogen base diluted with water to a resin solids content of 35 to 60 percent in the presence of (B) a polyvalent film-forming resin without polyelectrolyte character and reactive with hydroxy groups, to provide a composition comprising 60 to 90 percent of (A) and 40 to 10 percent of (B) on a solids basis.