The paper sets out necessary conditions for the existence of a phase t
ransition in a steady state one-dimensional vertical hydrothermal flow
. The entropy inequality (reflecting the presence of capillarity) and
a thermodynamical inequality at the phase boundary are combined to del
ineate the region of permissible flow states in the mass-energy flow p
lane. In particular, it is shown that for small mass flow/permeability
ratios the configuration consisting of single-phase liquid lying over
a vapor-dominated two-phase fluid is not stable. These and other resu
lts are discussed in the context of several field examples, including
Kawah Kamojang (Indonesia) and Wairakei (New Zealand).