A driven diffusive model of three types of particles that exhibits pha
se separation on a ring is introduced. The dynamics is local and compr
ises nearest-neighbor exchanges that conserve each of the three specie
s. For the case in which the three densities are equal, it is shown th
at the model obeys detailed balance. The Hamiltonian governing the ste
ady state distribution in this case is given and is found to have long
range asymmetric interactions. The partition sum and bounds on some c
orrelation functions are calculated analytically demonstrating phase s
eparation.