The present invention relates to an improved isocyanate reactive mixture containing at least one DMC-catalyzed polyol and about 0.25 to about 15 wt. %, based on the total weight of the isocyanate-reactive mixture, of at least one ethylene oxide (EO) containing water compatibilizer. The isocyanate reactive mixtures of the present invention may find use in the preparation of polyurethane foams, coatings, elastomers, sealants, adhesives and the like.