A Hydro-Kinematic approach is proposed for the design of compact corrugated plate interceptors (CPIs) for the de-oiling of produced water. For a given set of design targets of a specific flow rate, maximum retention time and minimum captured oil droplet diameter, the Hydro-Kinematic approach proposes a systematic way to determine the CPI unit dimensions and operating conditions with the minimum volume and area per unit input flow rate. The approach takes into account the hydrodynamic constraints in the design of the CPI imposed by the behavior of the dispersed oil droplets in response to the hydrodynamic field. Design charts and equations are given to ease the design process for a wide range of design target parameters. The same approach can be used to determine the best operating conditions for existing CPI units.