A method and apparatus for inline, controlled water separation from a multiphase hydrocarbon production stream. The method includes the steps of directing the multiphase hydrocarbon production stream to a gas/liquid separator in order to separate into a gas stream and a liquid stream. The level of liquid in the gas/liquid separator is monitored and controlled. The liquid stream removed from the gas/liquid separator is directed to an enlarged pipe section in order to separate into an oil portion and a water portion. The level of the oil portion in the enlarged pipe section is monitored and controlled. The water portion from the enlarged pipe section is directed to a liquid-liquid cyclone centrifugal separator in order to separate into a water stream and a hydrocarbon concentrated stream. The water stream from the liquid cyclone centrifugal separator is directed to at least one de-oiling hydrocyclone separator. The oily water stream is directed back to the production stream for further processing and the water stream is delivered for disposal.