Hepatic 7␣-hydroxylase activity appears to be regulated at the transcriptional level by the quantity of bile salts fluxing through the enterohepatic circulation. Whether bile salts directly suppress 7␣-hydroxylase expression at the level of the hepatocyte or do so indirectly by promoting the release or absorption of an intestinal factor has not been resolved. We have investigated the ability of primary bile salts to suppress hepatic 7␣-hydroxylase expression in bile-diverted hamsters. Biliary diversion was accompanied by derepression of both hepatic 7␣-hydroxylase activity (4 -5-fold) and bile salt secretion (ϳ3-fold). Derepression of hepatic 7␣-hydroxylase expression could be prevented by several interventions that increase the availability of bile salts within the hepatocyte including 1) overexpression of an exogenous 7␣-hydroxylase gene by adenovirus-mediated gene transfer, 2) obstruction of the common bile duct, and 3) intravenous infusions of taurocholate. In contrast, none of these interventions prevented derepression of hepatic cholesterol synthesis or significantly down-regulated hepatic low density lipoprotein receptor expression over the relatively short time course (24 h) of these studies. Together, these data indicate that primary bile salts contribute to the regulation of bile salt synthesis through feedback repression of 7␣-hydroxylase expression at the level of the hepatocyte.Conversion of cholesterol to bile salts is the principal regulated pathway whereby cholesterol is eliminated from the body. The first and rate-limiting step in this pathway is catalyzed by hepatic cholesterol 7␣-hydroxylase (1). Hepatic 7␣-hydroxylase activity appears to be regulated at the transcriptional level by the quantity of bile salts fluxing through the enterohepatic circulation (2, 3). Thus, interventions that accelerate bile salt loss from the enterohepatic circulation (thereby reducing bile salt pool size) lead to derepression of hepatic 7␣-hydroxylase expression and enhanced bile salt synthesis. Conversely, expansion of the enterohepatic pool of bile salts leads to suppression of 7␣-hydroxylase activity and reduced rates of bile salt formation.How bile salts fluxing through the enterohepatic circulation regulate the expression of hepatic 7␣-hydroxylase remains unclear. In the bile-diverted rat, depletion of the enterohepatic pool of bile salts leads to derepression of hepatic 7␣-hydroxylase activity and an increase in the rate of bile salt synthesis, effects that can be prevented by the intraduodenal administration of bile salts (4, 5). The conventional interpretation of these experiments is that the flux of bile salts through the hepatocyte (or, more likely, the concentration of bile salts within the hepatocyte) is being sensed, resulting in feedback repression of the rate-limiting enzyme in the bile salt biosynthetic pathway. However, early studies using hepatocyte suspensions or cultures failed to demonstrate any direct regulatory effect of exogenous bile salts on the secretion of bile salts into the media (6, ...