Adenylate cyclase activity was localized in the lactating mouse mammary gland using an ultrastructural histochemical technique. Reaction product was deposited on the plasma membrane of the myoepithelial cells adjacent to the secretory epithelium. No reaction product was encountered on the secretory epithelium. These findings suggest that the presence of cAMP, previously biochemically documented in lactating mammary gland, is mainly connected with myoepithelial cellular activity. The asymmetrical distribution of adenylate cyclase activity suggests that cAMP is involved in the intercellular communication between the secretory and myoepithelial cells and that the secretory epithelium takes part in the regulation of the contraction of myoepithelial cells.