Diisopropyl ether (DIPE) may be generated via a novel, two-step process from crude, by-product, acetone streams through initial acetone hydrogenation over a bulk-metal, nickel-rich catalyst to give isopropanol (IPA), followed by dehydration of said IPA intermediate in the presence of an acidic, large-pore zeolite catalyst. Three classes of acidic zeolite have proven effective for selective DIPE production, including Beta-zeolite, beta-zeolites modified with certain transition metals, and dealuminized Y-zeolites.