It is shown that the statistical orthogonality of the Karhunen-Loeve (
KL) eigenfunctions with respect to both energy and dissipation makes t
hem a particularly good basis for the definition of an energy spectrum
in inhomogeneous fluid flows. An effective wave number is defined to
characterize the KL eigenfunctions. The definition preserves the relat
ionship between the dissipation and energy spectra that holds for Four
ier spectra. With the spectrum and wave number so defined, the scale-s
imilarity arguments that lead to the existence of a spectral inertial
range apply. It is also shown that the existence of a spectral inertia
l range in the KL eigenspectrum is consistent with Kolmogorov's scale-
similarity formulation for structure functions. An example of the KL s
pectrum obtained from a numerically simulated plane channel flow is pr
esented.