Two methods were used to alkylate high MW chitosan with glycidyltrimethylammonium chloride (GTAC) in order to produce chitosan derivatives that are water-soluble throughout the pH range. In addition, a novel chitosan derivative was created by alkylating one of the products with the GTAC analogue Quab 342 containing C12 alkyl chains. The phase behaviour and rheological characteristics of the chitosan derivatives were studied in the presence of anionic surfactant. The derivatives were found to form soluble complexes at low and high SDS concentrations and that the Quab 342 derivative was able to form gels.