This study reports on the presence of latent plasminogen activator (PA) activity in human amniotic fluid (HAF). To measure PA, HAF was incubated with plasminogen, and the formation of plasmin was followed by its ability to cleave globin. The latent proenzyme in HAF was converted to active PA by treatment with sodium dodecyl sulphate (SDS) but not by tryptic digestion. The level of SDS-activatable PA activity in HAF increased with increasing gestational age. In an alternative, direct assay of PA based on its amidolytic activity upon L-pyroglutamyl-glycyl-L-arginine-p-nitroanilide (S-2444), HAF PA activity could be demonstrated even without prior exposure to SDS. Medium conditioned with either chorion or amnion produced PA activity suggesting that HAF PA is derived from the fetal membranes. Treatment of the conditioned medium with SDS or trypsin further increased the enzyme activity. The fetal membranes also produce inhibitory activities towards exogenous trypsin, plasmin, and urokinase. The inhibition of plasmin could be separated from the inhibitory activities towards trypsin and urokinase by DEAE-sephadex ion-exchange chromatography. The function of PA in the normal physiology and in pathological processes involving HAF and the fetal membranes remains to be elucidated.