The system for producing a hydrocarbon-rich stream from a well having a hydrocarbon producing zone (24) closely spaced from a disposal zone (26) therein and disposing a water-rich stream without transporting it to the surface comprises a well bore penetrating the hydrocarbon producing zone and the disposal zone in the earth; a packer (102) disposed in the well bore between the producing zone and the disposal zone; tubing (36) extending from the surface; and an assembly (86) coupled to the tubing, the assembly comprising a motor (88), a pump (92) coupled to the motor and a separator (98) in fluid communication with the pump, wherein the separator is disposed on the disposal zone side of the packer and has an inlet in fluid communication with the producing zone, a hydrocarbon-rich stream outlet (104) in fluid communication with the tubing and a water-rich stream outlet (100) in fluid communication with the disposal zone, wherein the pump is disposed to direct the flow of liquid from the producing zone into contact with the motor and through the separator.