We describe a constructive algorithm for obtaining smoothsolutions of a nonlinear, nonhyperbolic pair of balance lawsmodeling incompressible two-phase flow in one space dimension andtime. Solutions are found as stationary solutions of a relatedhyperbolic system, based on the introduction of an artificial timevariable.As may be expected for such nonhyperbolic systems, in general thesolutions obtained do not satisfy both components of the giveninitial data. This deficiency may be overcome, however, byintroducing an alternative “solution" satisfying both componentsof the initial data and an approximate form of a correspondinglinearized system.