Polyether polyols having equivalent weights of up to 500 are continuously prepared in the presence of a double metal cyanide catalyst. A first step of the reaction is performed at a temperature of at least 150° C., while controlling the hydroxyl content and unreacted alkylene oxide content of the reaction mixture to within certain ranges. A portion of that reaction mixture is withdrawn and permitted to react non-isothermally to consume the unreacted alkylene oxide. This process is highly efficient, does not result in catalyst deactivation, as is commonly seen in previous processes, and does not produce a significant ultra high molecular weight tail.