Novel hydrophobically associating terpolymer compositions containing cationic functionality are described. These water soluble or water dispersible polymers contain both water soluble and water insoluble monomers. The water soluble monomers are ethylenically unsaturated nonionic monomers, such as acrylamide (AM), and cationic monomers, such as a salt of an amine base (C), such as 3-methacrylamidopropyltrimethylammonium chloride (MAPTAC), 2-methacrylatoethyltrimethylammonium chloride (METAC) and diallyldimethylammonium chloride (DMDAAC). The hydrophobic or water insoluble monomer is a higher alkyl(meth)acrylamide or alkyl (meth)acrylate (R). These polymers are referred to as CRAM. While the novel compositions of this invention impart unusual properties to water based fluids, they are extremely efficient for clean-up of waste waters containing organic contaminants and for breaking oil-in-water emulsions.