A monomer containing a chlorohydrin moiety, propyl chlorohydrin diphenolate (PCHDP), was synthesized. Reactive polyesters having these pendant chlorohydrin moieties were prepared by the interfacial polycondensation of isophthaloyl chloride with PCHDP or with PCHDP and diphenolic acid using phase transfer catalyst. The molar ratio of reactants and the phase ratio of water to organic solvent strongly affect the molecular weight of resulting polymers and polymers with high molecular weight are obtained at the molar ratio of 1.0-1.15 and the phase ratio of 2.0-3.5. Swelling of the growing polymers is dependent on the molar ratio of the reactants and the phase ratio because of the hydrophilic and hydrophobic nature of the pendant chlorhydrin moiety. The resulting polymers are not soluble in any solvent except water in which hydrolysis occurs. Thus so, the structure of polymers was confirmed by C-13 CP/MAS NMR.