The research investigates how listeners segment the acoustic speech signal into phonetic segments and explores implications that the segmentation strategy may have for their perception of the (apparently) context-sensitive allophones of a phoneme. Two manners of segmentation are contrasted. In one, listeners segment the signal into temporally discrete, context-sensitive segments. In the other, which may be consistent with the talker’s production of the segments, they partition the signal into separate, but overlapping, segments freed of their contextual influences. Two complementary predictions of the second hypothesis are tested. First, listeners will use anticipatory coarticulatory information for a segment as information for the forthcoming segment. Second, subjects will not hear anticipatory coarticulatory information as part of the phonetic segment with which it co-occurs in time. The first hypothesis is supported by findings on a choice reaction time procedure; the second is supported by findings on a 4IAX discrimination test. Implications of the findings for theories of speech production, perception, and of the relation between the two are considered.