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We present a theoretical analysis of spatial correlations in a one-dimensional driven-dissipative non-equilibrium condensate. Starting from a stochastic generalized Gross-Pitaevskii equation, we derive a noisy Kuramoto-Sivashinsky equation for the phase dynamics. For sufficiently strong interactions, the coherence decays exponentially in close analogy to the equilibrium Bose gas. When interactions are small on a scale set by the nonequilibrium condition, we find through numerical simulations a crossover between a Gaussian and exponential decay with peculiar scaling of the coherence length on the fluid density and noise strength.