Under conditions that permitted continued protein synthesis, spheroplasts of Escherichia coli were unable to form active alkaline phosphatase, although they synthesized protein that was antigenically related to alkaline phosphatase subunits. This cross-reacting protein was primarily detected in the medium of the spheroplast culture, and it had properties that closely resembled those of the alkaline phosphatase subunit. These results suggest that formation of the active alkaline phosphatase dimer by intact E. coli cells proceeds by a pathway in which inactive subunits released from polyribosomes diffuse through the bacterial cell membrane to a periplasmic space where subsequent dimerization to active enzyme occurs. This pathway provides a possible mechanism for the specific localization of this enzyme to the E. coli periplasmic space.