In fetal rat liver in utero, an increase in glycogen and the glycogen synthetic enzyme glycogen synthetase (EC 2.4.1.11) occurs between gestational days 17 and 19. We used an organ culture system for finding the stimulus for increased enzyme activity and defining the relationship of this increase to glycogen synthesis. In fetal-liver explants from an earlier period (gestational day 16), hydrocortisone causes an elevation in total glycogen synthetase activity. This effect, which can be blocked by actinomycin D, is strikingly similar in time course and magnitude to the normal increase in utero. However, in order for glycogen synthesis to proceed after hydrocortisone increases glycogen synthetase levels, insulin is required. Unlike hydrocortisone, insulin does not increase total glycogen synthetase; it appears to act by converting the b or phospho form of synthetase to the a or dephospho form. Insulin alone does not stimulate glycogen synthesis in explants from 16-day fetal liver, although no defect in insulin binding was demonstrable. These findings support the hypothesis that the increase in liver-glycogen synthesis during the last trimester requires glucocorticoids for the developmental induction of glycogen synthetase and insulin for activation of the enzyme.The glycogen content of fetal rat liver increases greatly during the last few days of gestation (1). Experiments in utero have shown that adrenal corticosteroids can increase glycogen in fetal liver as early as the 15th day of gestation (2). Experiments in vitro with term (gestational day 21) fetal-liver explants in organ culture have shown that insulin, but not hydrocortisone, stimulates glycogen synthesis at the end of gestation (3, 4). We postulated that this difference in the action of hydrocortisone in utero and in organ culture may be explained on the basis of differences in gestational age. The major developmental increase in glycogen and the glycogen synthetic enzyme glycogen synthetase (EC 2.4.1.11) occurs between the 17th and 19th days of fetal life in the rat (5). It is possible that the effect of hydrocortisone may be fully expressed in term tissue. We therefore studied the action of hydrocortisone and insulin on glycogen metabolism in fetal rat liver explants from day 16 of gestation. At this stage of gestation, hydrocortisone caused an increase in total glycogen synthetase (a+b) that was strikingly similar to the normal induction of the enzyme in utero. Glycogen synthesis, however, required insulin. Unlike glucocorticoids, insulin did not increase total glycogen synthetase (a+b), but appeared to convert the b or phospho form of synthetase to the a or dephospho form. In term fetal liver, total glycogen synthetase had already reached adult levels and was not further increased by hydrocortisone, whereas insulin increased synthetase a and stimulated glycogen synthesis.The two hormones had distinctly different effects on glycogen synthetase. Glucorticoids stimulated the developmental induction of total glycogen synthetase (a+b), while insul...