There are two approaches in the literature as to how the Ground of PPs combines with adpositions. In the more traditional approach, the Ground is the complement of the adposition. On the other view, PPs have an underlying binominal structure. The complement of the adposition is a silent PLACE noun, and the Ground is merged as the possessor of PLACE. This paper demonstrates that Southern Hokkaido Ainu uses both types of PP structures. Inherently locative nouns are merged as adpositional objects. Non-inherently locative nouns, however, cannot be embedded under adpositions. Two types of rescue strategies are available in this case: compounding to a locative relational noun, or being merged as a possessor of a locative relational noun. The locative relational noun for general location is or 'place'. I argue that or is the overt counterpart of PLACE, and show evidence that in the binominal structure there is an inalienable possessive relationship between the Ground and or.