with an appendix by daniel g. davis 2 and ben wieland 3 Abstract. When G is a profinite group and H and K are closed subgroups, with H normal in K, it is not known, in general, how to form the iterated homotopy fixed point spectrum (Z hH ) hK/H , where Z is a continuous G-spectrum and all group actions are to be continuous. However, we show that, if G = Gn, the extended Morava stabilizer group, and Z = b L(En∧X), where b L is Bousfield localization with respect to Morava K-theory, En is the Lubin-Tate spectrum, and X is any spectrum with trivial Gn-action, then the iterated homotopy fixed point spectrum can always be constructed. Also, we show that (E hH n ) hK/H is just E hK n , extending a result of Devinatz and Hopkins. n . Thus, in this more complicated situation, we show how to construct (E dhH n