We report the effect of added salt on the reversible addition-fragmentation chain transfer (RAFT) polymerization of 2-hydroxyethyl methacrylate (HEMA) in aqueous media. More specifically, poly(2-(methacryloyloxy)ethyl phosphorylcholine) (PMPC26) was employed as a salt-tolerant water-soluble block for chain extension with HEMA targeting PHEMA DPs from 100 to 800 in the presence of NaCl. Increasing the salt concentration significantly reduces the aqueous solubility of both the HEMA monomer and the growing PHEMA chains. HEMA conversions of more than 99% could be achieved within 6 h at 70 °C regardless of the NaCl concentration when targeting PMPC26-PHEMA800 vesicles at 20% w/w solids. Significantly faster rates of polymerization were observed at higher salt concentration owing to the earlier onset of micellar nucleation. Transmission electron microscopy (TEM) was used to construct a pseudo-phase diagram for this polymerization-induced self-assembly (PISA) formulation. High-quality images required cross-linking of the PHEMA chains with glutaraldehyde prior to salt removal via dialysis. Block copolymer spheres, worms, or vesicles can be accessed at any salt concentration up to 2.5 M NaCl. However, only kinetically trapped spheres could be obtained in the presence of 3 M NaCl because the relatively low HEMA monomer solubility under such conditions leads to an aqueous emulsion polymerization rather than an aqueous dispersion polymerization. In this case, dynamic light scattering studies indicated a gradual increase in z-average diameter from 26 to 86 nm when adjusting the target PHEMA degree of polymerization from 200 to 800. When targeting PMPC26-PHEMA800 vesicles, increasing the salt content up to 2.5 M NaCl leads to a systematic reduction in the z-average diameter from 953 to 92 nm. Similarly, TEM analysis and dispersion viscosity measurements indicated a gradual reduction in worm contour length with increasing salt concentration for PMPC26-PHEMA600 worms. This new PISA formulation clearly illustrates the importance of added salt on aqueous monomer solubility and how this affects (i) the kinetics of polymerization, (ii) the morphology of the corresponding diblock copolymer nano-objects, and (iii) the mode of polymerization in aqueous media.