We present experimental realization of type-II spontaneous parametric down-conversion in a periodically poled
potassium titanyl phosphate (KTiOPO4) nonlinear waveguide. We demonstrate that by careful exploitation of
intermodal dispersion in the waveguide it is feasible to produce photon pairs in well defined transverse modes
without any additional spatial filtering at the output. Spatial characteristics is verified by measurements of
the M2 beam quality factors. We also prepared a postselected polarization-entangled two-photon state shown
to violate Bell’s inequality. Similar techniques based on intermodal dispersion can be used to generate spatial
entanglement and hyperentanglement.