Lung is the receptacle that holds phlegm

Fluids are passed by the spleen to the lung, which distributes them around the body. Damp-qì arising when spleen qì is vacuous and fails to move and transform the fluids properly gathers to form phlegm, which collects in the lung. Thus the lung is the receptacle that holds phlegm, i.e., the place where it collects. See spleen is the source of phlegm formation.