Methods of using water-soluble hydrophobically modified polymers to treat intervals of a subterranean formation having variable permeabilities. An exemplary embodiment provides a method of treating an interval of a subterranean formation having a permeability that varies. The method comprises contacting the interval with a water-soluble hydrophobically modified polymer capable of selectively reducing the effective permeability of the interval to water without a comparable reduction of the effective permeability of the interval to hydrocarbons. The hydrophobically modified polymer modifies the interval to have a more uniform permeability without substantially preventing the flow of fluids through the interval. The method further comprises introducing a treatment fluid into the interval. The more uniform permeability of the interval allows for a more uniform treatment of the interval by the treatment fluid than would be allowed without treatment of the interval with the hydrophobically modified polymer.