In this work we derive the fundamental equations for conditional moment closure (CMC) modelling of individual phases set in a two-phase flow. The derivation is based on the instantaneous transport equations for the single phase that involve a level set/indicator function technique for accounting for interfaces. Special emphasis is put on spray combustion with the CMC equations formulated for the gas phase. The CIVIC equations are to be viewed as an adjunct to existing methods for the modelling of the dynamics of sprays: they provide a refinement of the modelling of chemical reactions in the gas phase. The resulting CIVIC equations differ significantly from those already in use in the literature. They contain, of course, unclosed terms that need to be modelled. Investigation of the unclosed terms associated with evaporation at the droplet surface is well beyond the capabilities of laboratory measurement or direct numerical simulation. it is proposed that modelling of these terms be based on the well-established 'laws' of similarity between heat and mass transfer: an example is detailed for one example of the general modelling of the spray dynamics. other unclosed terms are important throughout the gas phase. Models used for these terms in single-phase flows are reviewed and it is proposed that any modifications needed for these models be investigated by DNS of suitable model problems having good resolution of the flow and mixing in the inter-droplet space. It is proposed that a spray analogue of the scalar mixing layer that has been widely studied in single-phase flows be used as the model problem for such DNS studies and also for LES and RANS modelling. (c) 2008 The Combustion Institute. Published by Elsevier Inc. All rights reserved.