A molecular level mechanism is proposed for the highly selective 14-e- oxidative transformation of n-butane to maleic anhydride on the surface of vanadyl pyrophosphate. The mechanism suggests that the dimeric active sites assume at any given time, one of four possible interconvertible states which differ from each other in the number of available oxygen atoms and the formal oxidation states of the individual vanadium atoms. The relative ratios of active sites in each of the four possible states are dictated by the reaction conditions, the redox properties of the reacting gases and the structure of the vanadyl pyrophosphate active surface. A crucial feature of the mechanism is a "pseudo-ozonide" surface species formed by the interaction of a chemisorbed dioxygen molecule and an adjacent metal-oxo group. This unusual species is responsible for the initial activation of the n-butane, which occurs when the chemisorbed dioxygen abstracts an H-atom from the alkane and the adjacent metal-oxo group reacts with the incipient alkyl radical to form an alkoxy group. The proposed mechanism is entirely consistent with literature reports describing the behaviour of (VO)2P2O7 in flow, pulse and TAP reactors.