A water-reducible polyester resin for use in producing urethane coatings comprises the reaction product of: a) hexahydrophthalic anhydride, trimellitic anhydride or phthalic anhydride; b) 1,4-cyclohexane dimethanol or trimethylol propane or mixtures thereof; and c) a polyethylene glycol selected from the group consisting of polyethylene glycols, methoxy polyethylene glycols and trifunctional polyethylene glycols having a molecular weight no greater than approximately 1050; the reaction product having a functionality between approximately 2 and 2.6. Another water-reducible polyester resin comprises the same components and a specified nonionic surfactant. Urethane coatings containing such polyester resins and a diisocyanate are also disclosed.

A water-reducible binder for coatings comprises the reaction products of a) a phenolic resin comprising the reaction product of bisphenol A, t-butyl phenol and formaldehyde; b) an alkylene carbonate alkoxylating agent; c) a diol selected form the group consisting of 1,4-cyclohexanedimethanol, 3,5,5-trimethylpentane diol and neopentyl glycol; and d) trimellitic anhydride. Methods for preparing such a water-reducible binder and coating systems comprising such a binder are also disclosed.