It is not certain where the appetizingly-named Discharge Alley was, though it seems likely to have been near the Delaware waterfront. Note the residence of "Esther" and "Persylla"-- possibly free blacks, though MacPherson seems not to have included black people as a rule in his directory.
(1785) #1 Discharge Alley, Davis, James
(1785) #2 Discharge Alley, Esther
(1785) #11 Discharge Alley, vacant or residents would not give name
(1785) #12 Discharge Alley, Rogers, Lilly
(1785) #13 Discharge Alley, Dawson, Edward
(1785) #14 Discharge Alley, McCowan, William
(1785) #15 Discharge Alley, Persylla
(1785) #16 Discharge Alley, Hood, John
(1785) #17 Discharge Alley, Course, Jacob