Glucose-6-phosphatase (G6Pase) is a key enzyme in hepatic glucose metabolism. Altered G6Pase activity in glycogen storage disease and diabetic states is associated with disturbances in lipid metabolism. We studied the effects of acute inhibition of G6Pase activity on hepatic lipid metabolism in nonanesthetized rats. Rats were infused with an inhibitor of the glucose-6-phosphate (G6P) translocator (S4048, 30 mg ⅐ kg -1 ⅐ h -1 ) for 8 h. Simultaneously, [1-13 C]acetate was administered for determination of de novo lipogenesis and fractional cholesterol synthesis rates by mass isotopomer distribution analysis. In a separate group of rats, Triton WR 1339 was injected for determination of hepatic VLDLtriglyceride production. S4048 infusion significantly decreased plasma glucose (؊11%) and insulin (؊48%) levels and increased hepatic G6P (201%) and glycogen (182%) contents. Hepatic triglyceride contents increased from 5.8 ؎ 1.4 mol/g liver in controls to 20.6 ؎ 5.5 mol/g liver in S4048-treated animals. De novo lipogenesis was increased >10-fold in S4048-treated rats, without changes in cholesterol synthesis rates. Hepatic mRNA levels of acetyl-CoA carboxylase and fatty acid synthase were markedly induced. Plasma triglyceride levels increased fourfold, but no differences in plasma cholesterol levels were seen. Surprisingly, hepatic VLDL-triglyceride secretion was not increased in S4048-treated rats. These studies demonstrate that inhibition of the G6Pase system leads to acute stimulation of fat synthesis and development of hepatic steatosis, without affecting hepatic cholesterol synthesis and VLDL secretion. The results emphasize the strong interactions that exist between hepatic carbohydrate and fat metabolism. Diabetes 50:2591-2597, 2001 P hosphorylation and dephosporylation of glucose by glucokinase and glucose-6-phosphatase (G6Pase), respectively, are key steps in hepatic glucose uptake and release. The balance between the activities of these enzymes represents an important site for the control of hepatic glucose production (1,2). G6Pase is located in the endoplasmic reticulum (ER) of liver, kidney, and, as recently shown, intestinal cells (3). The glucose-6-phosphate (G6P) metabolizing machinery consists of a putative translocator (4,5) that transports G6P from the cytosol into the ER lumen and a catalytic subunit that converts G6P to glucose and inorganic phosphate (6). The catalytic subunit is localized to the inner ER membrane. Interestingly, there are several indications to suggest that this site of regulation of glucose metabolism is linked to that of hepatic lipid metabolism. G6Pase activity is increased in patients and animal models of diabetes (2,7,8), probably contributing to increased hepatic glucose production in these conditions. Diabetes is generally associated with hyperlipidemia, which has been found to be mainly due to overproduction of VLDLtriglycerides in type 2 diabetes (9 -11). Deficiency of G6Pase activity, the metabolic basis of glycogen storage disease type I (GSD-1), also leads to abnormalit...