This article describes the first example of an aqueous cationic polymerization that utilizes a low cost, safe, and highly recyclable initiator system (phosphotungstic acid) that retains its activity indefinitely. Quantitative yields of low to medium molecular weight polymers of p‐methoxystyrene and N‐vinylcarbazole are obtained within minutes to hours. Polymerization is first order in both monomer and phosphotungstic acid. Negatively charged surfactants suppress polymerization; whereas, nonionic soaps increase the reaction rate and reduce both polymer molecular weight and polydispersity index. Herein, the discovery of a new form of aqueous cationic polymerization involving the condensation of the alcoholic derivative of p‐methoxystyrene, 1‐(4‐methoxyphenyl)ethanol, is also disclosed.