Traditional water management methods have ranged from "just live with it", to trying "magic bullet" chemical water shut-off treatments, or even trying to develop a market to sell the water. The new view is to manage water in the wellbore and/or in the reservoir. Since nature has spent millions of years separating the water and oil in the reservoir, it seems ironic that only a few seconds in the pump and tubing are required to remix the oil and water - possible into tight emulsions. We then spend millions of dollars on chemicals and equipment, especially on offshore platforms, to re-separate the oil and water. A far better solution is to prevent the mixing by modifying the method of artificial lift. Texaco has now applied for patents on several methods of artificial lift that reduce the amount of water lifted to surface by using the wellbore as a separator, and handling the oil and water separately. These methods also are adaptable to reverse coning applications, giving even further advantages over conventional pumping. The ultimate goal is to dispose the water downhole, rather than lifting it to the surface. The first few methods, such as the Dual Action Pumping System (DAPS), have been field tested, with exciting results. Several of the other newer pumping combinations will also be described is this presentation.