High-performance materials such as solventborne coatings have been produced from polyurethanes for many years. However, with current regulatory pressures, a move to water systems and to materials from bio-based renewable resources is necessary. Although it is possible to formulate waterborne polyurethane systems, the widely used adipate polyester backbones often cause problems, such as reduction in storage stability and hydrolytic resistance. Additionally, the water evaporation rate of polyurethane dispersions is seen as a drawback in certain applications such as UV-curable coatings and adhesives. However, a range of hydrolytically stable polyester polyols using bio-based technology has overcome these deficiencies. The reduced number of ester bonds and the hydrophobic environment make these polyols practically immune to water, while maintaining thermal- and UV-resistance characteristics. In this paper, it is demonstrated that these polyester polyols, produced from C-36 dimer fatty acids, improve the hydrolytic and storage stability of polyurethane dispersions.