Emergency services were called to the East Sands Leisure Centre in St Andrews shortly after 1pm.
The Scottish Ambulance Service arrived at the scene within seven minutes of the 999 call and says paramedics are currently dealing with multiple injuries.
A spokesman has confirmed that 16 people are suffering from minor breathing irritation. Many are expected to be taken to hospital; however, at this stage, their injuries are not thought to be life threatening.
Scottish Fire and Rescue Service crews are also at the scene. Three breathing apparatus teams in gas-tight suits entered the leisure centre to isolate the power in the plant room and search the building. Crews have confirmed that all persons were accounted for.
There are currently 13 SFRS appliances in attendance including five pumping appliances, a control unit, an emergency support unit and a hazardous materials appliance.
Statement from Fife Sports & Leisure Centre
"At approximately 1pm today, emergency services were called to East Sands Leisure Centre in St Andrews following a suspected chemical leak. All customers and staff were able to evacuate the building safely without assistance, however, 16 people, including two members of staff, were referred for medical assistance for minor breathing irritation.
"Emergency services and staff are still on site but all customers have left the area. The exact cause of the incident is still being investigated by the emergency services and there is no threat to the surrounding area.
"We will continue to work with emergency services and will keep customers updated as to the status of the centre via our website http://www.fifeleisure.org.uk/"
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