Aqueous hydrophobic polyurethane dispersions are made from urethane prepolymers derived from reacting constituents including at least one polyisocyanate, vegetable oil based saturated monoglycerides, non-isocyanate based urethane polyols prepared from polyamines and cyclic carbonates, at least one long-chain polymeric polyol or long-chain polyol from biorenewable resources, polyols with hydrophilic groups, optional polydimethysiloxane based polyols with hydroxyl functional groups terminated in one end and alkyl groups terminated in another end.