The distribution of four bile salts: sodium cholate (I), sodium deoxycholate (II), sodium chenodeoxycholate (III), and sodium urso- deoxycholate (IV), between aqueous buffer and 1-octanol has been measured as a function of temperature between 25 and 55° and as a function of bile salt concentration at concentrations <0.1 mole/liter in the aqueous phase. The distribution isotherms obtained have been explained on the basis of reversible association in the aqueous phase. The treatment assumes that the bile acid exists as a monomer in the organic phase, which is verified by vapor pressure osmometry. A graphical method has been employed to estimate the association constants in the aqueous phase for the various equilibria encountered. An aggregation number of four for IV and 12 for I, II, and III has been estimated. From the results, thermodynamic functions associated with the transfer of each of the bile salts from water to octanol and those associated with association processes in the aqueous phase were calculated. These results are consistent with previous findings that the premicellar association of bile salts occurs by hydrophobic interaction. The thermodynamics of transfer of bile salts revealed an unfavorable enthalpic and favorable entropic contribution for all four bile salts. However, for IV, which is an epimer of III, both enthalpic and entropic contributions are reduced, compared to III, suggesting a pronounced effect of stereochemical orientation on hydrophobic interaction.