This work concerns the optimal regulation of single-input-single-output nonminimum-phase nonlinear processes. The problem of calculation of an ISE-optimal, statically equivalent, minimum-phase output for nonminimum-phase compensation is formulated using Hamilton-Jacobi theory and the normal form representation of the nonlinear system. A Newton-Kantorovich iteration is developed for the solution of the pertinent Hamilton-Jacobi equations, which involves solving a Zubov equation at each step of the iteration. The method is applied to the problem of controlling a nonisothermal CSTR with Van de Vusse kinetics, which exhibits nonminimum-phase behaviour. (C) 2006 Elsevier Ltd. All rights reserved.