We present a continuum theory of self-propelled particles, without alignment interactions, in a momentum-conserving solvent. To address phase separation we introduce a scalar concentration field φ with advective-diffusive dynamics. Activity creates a contribution Σij = −ζ((∂iφ)(∂jφ) − (∇φ) 2 δij/d) to the deviatoric stress, where ζ is odd under time reversal and d is the number of spatial dimensions; this causes an effective interfacial tension contribution that is negative for contractile swimmers. We predict that domain growth then ceases at a length scale where diffusive coarsening is balanced by active stretching of interfaces, and confirm this numerically. Thus the interplay of activity and hydrodynamics is highly nontrivial, even without alignment interactions.PACS numbers: 63.50.Lm, 47.57.E-'Active matter' means the collective dynamics of selfpropelled particles at high density. By converting energy into motion, such particles violate time-reversal symmetry (TRS) at the micro-scale. This violation changes the structure of coarse-grained equations of motion, allowing far-from-equilibrium physics to dominate at large scales [1]. Active matter can be 'wet', i.e., coupled in bulk to a momentum-conserving solvent, or 'dry', i.e., for instance in contact with a momentum-absorbing wall. 1 'Wet' active systems include not only bacterial swarms in a fluid, the cytoskeleton of living cells, and biomimetic cell extracts [1-4], but also synthetic colloidal swimmers in a fully bulk geometry. Such swimmers may in future offer a toolbox for directed assembly of new materials in three dimensions. Many of these artificial colloidal swimmers are spherical objects, with asymmetric coatings that cause them to move through a bath of fuel and/or under illumination with light [5].Of particular importance is the 'active liquid crystal' (ALC) theory [1,6], which starts from a passive fluid of rod-like objects [7] with either a polar order parameter P [8], or a nematic one Q [9]. An active stress is then added; this is −ζP ⊗ P or −ζQ, with ζ odd under time reversal and the dyadic product ⊗, representing the leading-order TRS violation in an orientationally ordered medium. This causes new physics such as giant number fluctuations [10], and spontaneous flow above an activity threshold that vanishes for large systems [8,9]. This instability depends on whether particles are extensile (pulling fluid inwards equatorially and emitting it axially) or contractile (vice versa). Numerical solutions [11][12][13] show spontaneous flows resembling experiments on bacterial swarms [2] and on microtubule-based cell extracts [4].There is one important effect of activity that ALC models do not capture (unless added by hand [14]):1 This wet/dry terminology has become conventional, although many 'dry' systems are immersed in a fluid.motility-induced phase separation (MIPS) [15,16]. If their propulsion speed falls fast enough with density (e.g., due to crowding interactions), even purely repulsive active particles phase-separate into dense and dilute ...