A hydrodynamic theory of rigid-rod micellar solutions is presented. The previously omitted intermicelle interactions are incorporated by generalizing the Onsager theory for nematic liquid crystals to account for polydispersity and self-assembly in the presence of flow. The micellar size distribution is derived as a function of shear rate in the form of a highly nonlinear integral equation. A numerical iteration procedure has been developed to simulate the solution to this integral equation. It is found that intermicellar repulsion postpones the micellar growth (Macromolecules 1991, 24, 3004) in flow to higher shear rates.