An epoxy based polymer with nonlinear optical azo chromophores was designed to contain anionic groups to induce water solubility and self assembly. Using this polyanion with a polycation, multilayers were prepared on a glass substrate by alternating adsorption from dilute aqueous solutions. The azo chromophores in the confined layer of the polyanion in the multilayer films self-assemble into a noncentrosymmetric alignment and demonstrate second order optical nonlinearity (d(33) = 19 pm/V).