A liquid separator is disclosed for separating a liquid mixture into first and second liquids of different densities. The liquid separator includes a substantially conical chamber having a closed upper portion with a liquid mixture inlet therein. A first liquid collecting mechanism is provided in a lower portion of the conical chamber for collecting and removing a first separated liquid, and a second liquid collecting device surrounds the opening in the lower portion of the conical chamber for collecting and removing a second separated liquid. A return conduit mechanism is provided for returning a portion of the second separated liquid tangentially into an upper portion of the conical chamber to act as a drive fluid to cause the centrally introduced liquid mixture to rotate for effective and efficient separation.