A fluid-powered high-speed spindle (100) having a longitudinal axis (A) defining an upper end defined by a shank and a lower end accepting a tool. The spindle includes a body (120), a rotatable shaft (530) supported by at least one bearing (508) within the body (120), a seal housing (150) connected to the body (120) at the lower end thereof, a cover (180) connected to the seal housing (150) at the lower end thereof, a fluid channel system for directing fluid from an entry port (102) to a nozzle (576) for turning a turbine (570) attached to the shaft (530); and a flinger (660) attached to the shaft (530) and positioned above the turbine (570). The flinger (660) and the seal housing (150) combine to form a non-contact seal (900) configured to impede the flow of fluid toward the at least one bearing (508).