With　reasonable　modeling　of　the　mechanism　of　oil　drop　coalescence　and　breakup　induced　by　turbulence,　a　new　interfacial　area　transport　equation　was　established,　which　can　dynamically　describe　the　axial　development　of　interfacial　area　concentration　of　an　oil-water　two-phase　dispersed　flow　in　vertical　upward　pipe.　When　modeling　oil　drop　coalescence　mechanism　induced　by　the　random　collisions　between　oil　drops　due　to　turbulence,　a　dimple　phenomenon　was　considered　to　describe　the　drainage　of　continuous　phase　between　two　oil　drops.　And　when　modeling　the　mechanism　of　oil　drop　breakup　induced　by　the　random　collision　between　oil　drop　and　turbulent　eddy,　the　two　daughter　oil　drops　may　have　a　variety　of　size.　The　prediction　made　by　the　interfacial　area　transport　equation　agrees　well　with　experimental　data　of　the　axial　development　of　interfacial　area　concentration　obtained　in　vertical　upward　oil-water　two-phase　dispersed　flow.