How did 16-bit C compilers work?

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C's memory model, with its use of pointer arithmetic and all, seems to model flat address space. 16-bit computers used segmented memory access. How did 16-bit C compilers deal with this issue and simulate a flat address space from the perspective of the C programmer? For example, roughly what assembly language instructions would the following code compile to on an 8086?

long arr[65536];  // Assume 32 bit longs.
long i;
for(i = 0; i < 65536; i++) {
    arr[i] = i;
}
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