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AbstractDownhole Water Sink (DWS) well completions segregate production in the wellbore by producing water from the water leg in the reservoir and oil from the upper oil bearing portion of the reservoir. A downhole pump drains water from the bottom completion and creates pressuredrawdown that inhibits water coning up to the upper producing zone. The pump injects the water to a disposal zone lower in the wellbore.Successful application of DWS technology in wells with water coning problem requires effective zonal isolation between the top and bottom completions of the well and good knowledge of permeability anisotropy. As these wells are dual completed, they are uniquely configured for vertical interference testing. The problem is that such test involves two fluids, water and oil, and is typically performed in a reservoir rock with no isolating layer between the top and bottom completion.The paper presents a new mathematical model and analysis method for vertical interference testing using top completion (in the oil leg) for production, and bottom completion (in the water leg) for observation. The model is analytical and accommodates partial penetration and permeability anisotropy. The analysis method employs a family of type curves. Also shown in the paper are examples of possible applications of this new testing method. 2 2 2 2 ln z z r z z z z r z z