Galaxy disc formation must incorporate the multiphase nature of the interst
ellar medium. The resulting two-phase structure is generated and maintained
by gravitational instability and supernova energy input, which yield a sou
rce of turbulent viscosity that is able to compete effectively in the proto
disc phase with early angular momentum loss of the baryonic component via d
ynamical friction in the dark halo. Provided that star formation occurs on
the viscous drag time-scale, this mechanism provides a means of accounting
for disc sizes and radial profiles. The star formation feedback is self-reg
ulated by turbulent gas pressure limited percolation of the supernova remna
nt heated hot phase, but can run away in gas-rich protodiscs to generate co
mpact starbursts. A simple analytic model is derived for a Schmidt-like glo
bal star formation law in terms of the cold gas volume density.