The role of divalent cations in the bile acid:CoA ligase catalyzed reaction of cholic acid, CoA and ATP to yield cholyl-CoA was investigated using guinea pig liver microsomes as the source of enzyme. EDTA treatment completely eliminated activity indicating an absolute requirement for divalent cation for enzyme activity. Analysis of this requirement revealed that it was twofold. First, the data suggested that ATP which was not complexed with a divalent cation did not appreciably bind to the enzyme and thus a divalent cation complex of ATP is the form of ATP that is the substrate for the enzyme. Further, this was shown to be the basis for the absolute requirement for divalent cation in the reaction. In addition, analysis revealed that there is a secondary site which binds divalent cations with relatively low affinity, and results in a rate enhancement. Binding at this secondary site is estimated to increase the rate by greater than 60%.