A process for production of diisopropyl ether by conversion of hydrocarbon feedstock containing propene, propane and C.sub.2 - light gas components, including the steps of: optionally, prefractionating fresh feedstock containing propene, propane and C.sub.2 - light gas components to provide a reactor feedstream rich in propene; contacting the feedstock and water in a catalytic reactor with acidic catalyst under olefin hydration and etherification conditions; and recovering from the catalytic reactor a liquid reactor effluent stream containing diisopropyl ether, isopropanol, water, unreacted propene, propane and C.sub.2 - light gas components. Improved operation is achieved by separating the liquid effluent stream in a vertical stripper column; recovering an overhead vapor stream containing propene, propane and C.sub.2 - light gas components from the stripper column; cooling the overhead vapor stream to provide a reflux stream rich in condensed propene and propane; removing the C.sub.2 - light gas components from condensed; recycling the reflux stream to an upper contact portion of the stripper column; and recovering a predominantly C3 recycle stream from the upper contact portion of the stripper column. Optionally, the C3 recycle stream may be passed to the to the prefractioning step for propene enrichment with fresh feedstock.