A novel process is described in which the resolution of a stable water-in-oil emulsion is augmented by the simultaneous use of pulsed DC electric fields and mild bubbling of the emulsion with air. The work has indicated that there is a synergistic effect of air sparging on demulsification in the electric field and that the maximum emulsion resolution requires the voltage to be pulsed with optimum frequency. Emulsion resolution was found to increase steadily with increasing air flow rate until a maximum value is reached after which the extent of phase separation starts to fall rapidly with further increase in the air flow rate. The electrical resolution was best (79% resolution) when the ratio of air to emulsion flow rate (volumetric) in the coalescer was about 120:1.