A process for preparing polyoxyalkylene phosphonates in high yield and purity without extensive isolation procedures. The process also enables hydroxy terminated polyoxyalkylene phosphonates to be produced with their attendant high aqueous solubility and the availability of the reactive group to have the end functionality easily molecularly modified. Products produced by these processes have enhanced dispersion, coating, adhesion, and plasticizing characteristics as a result of the lack of any steric hinderance on these polyoxyalkylene phosphonates.