This paper shows how to forecast liquid condensate and water production from gas and gas-condensate wells. The methodology is based on the Whitson and Fevang's5 method of handling fluid properties using two-phase pseudopressure function that not only takes into account the pressure dependence of the fluid properties but also retrograde behavior (phase change) of light hydrocarbons in the reservoir. Tedious mathematical treatment indicates that the oil phase production can also be predicted using the surface gas production in case of two-phase, and gas and water production data in case of three-phase producing wells.To establish Inflow Performance, one needs relative permeability data along with PVT data. In this study, we have used pressure transient methods to obtain the effective permeability as a function of pressure. Once the correlation between the effective permeability and pressure is obtained, it is used in the pesudopressure integral. Sapphire well test simulator was used to simulate pressure test data and PVT data for condensate wells. The effective permeability correlation was developed from the well test analysis. This was done by simulating 2-phase and 3-phase gas-condensate reservoirs with reservoir pressure equal to P*.The main source of the liquid condensate is considered the 1st region, closest to the wellbore, which is spread areally between the wellbore and the pressure P*, in the reservoir. Flow in this region is two phase in nature. Some of the liquid phase may go into the gas phase due to retrograde conditions if exist. Region-2 consists of liquid and the gas phase but it is assumed that the liquid condensate is immobile since the liquid saturation has not builtup enough to initiate flow. The pressure range in this region is from Pd to P*. The water production, however, is the contribution of the entire reservoir since no phase change is expected in the aqueous phase. More importantly, water phase is considered as the most reliable phase in gas condensate systems from engineering point of view, since water properties hardly change with pressure in the reservoir.Two examples are solved with simulated data to show the use of the technique developed.