We identify a new category of natural hydrothermal systems intermediate between liquid- and vapor-dominated. This category is characterized by a “vapliq” vertical pressure profile, which is nearly vaporstatic in the shallower portion of the system, and nearly boiling-point-for-depth at depth. The prototype of these systems is the geothermal field of Los Azufres, Mexico. To explore the thermohydrological conditions conducent to this type of system, we propose a 1-D vertical scenario based on generally accepted conceptual models of liquid- and vapor-dominated geothermal reservoirs. We use the corresponding mass and thermal energy transport equations to establish that a necessary condition for the existence of 2-phase hydrothermal systems is that the absolute value of the vertical thermal flux must exceed Q{sub min}, a parameter that depends only on the values of the pressure and of the thermal conductivity at the boiling point of the system. The values of Q{sub min} are typically 1-4 times the average terrestrial flux. We also find that geothermal systems in which convective heat transport is accomplished by the well-known heat-pipe mechanism can exist only if the corresponding heat flux exceeds Q{sub min} and the permeability at the boiling point of the system is smaller than k{sub Bmax}, a parameter that depends only on the values of the pressure and of the thermal conductivity at the boiling point. Typical values of k{sub Bmax} are 1-3 {times} 10{sup -18} m{sup 2}, suggesting a reason for the fact that all vapor-dominated systems are associated with very-low matrix permeability formations. Applying these insights, and the mass and heat transport equations to Los Azufres, we conclude that a contrast of 1-3 orders of magnitude exists between the vertical permeability at the boiling point and that corresponding to the vapor-dominated portion of the system. We propose that similar permeability contrasts may be responsible for the characteristic composite pressure observed in other vapliq systems.