We report the chemical synthesis of an N-substituted water-soluble polyaniline derivative. This novel processable conducting polymer has been characterized by a wide range of techniques including visible absorption, FTi.r. and H-1 n.m.r. spectroscopy, scanning electron microscopy, cyclic voltammetry in non-aqueous media, room temperature d.c. conductivity measurements, photon correlation spectroscopy and thermogravimetry.