The 'chemical compensation' of conducting polypyrrole (PPy) film by NaOH solution has been studied by cyclic voltammetry and vis-n.i.r. spectrometry. Strong evidence has been obtained to consider the process as a counter anion exchange between the intercalated anion and OH- in solution. The NaOH-treated PPy film PPy (OH-), was found to be capable of being further electrochemically reduced to PPy0. PPy(OH-) in NaOH solution is electrochemically reversible in the potential range -0.2 to -1.0 V versus SCE.