The adipose differentiation-related protein (ADFP)/adipophilin belongs to a family of PAT (for perilipin, ADFP, and TIP47) proteins that associate on the surface of lipid droplets (LDs). Except for LD association, a clear role for ADFP has not been found. We demonstrate that ADFP is transcriptionally regulated by peroxisome proliferator-activated receptor a (PPARa) in mouse liver and rat and human hepatoma cells through a highly conserved direct repeat-1(DR-1) element. Although the ADFP mRNA is highly increased by a synthetic PPARa agonist, the ADFP protein is only substantially increased in cells containing LDs, such as hepatocytes incubated with fatty acids, and in livers of fasted mice. ADFP is induced by fasting even in the absence of a functional PPARa, in marked contrast to the PPARa target gene acyl-coenzyme A oxidase-1. Activation of LXRs, which stimulates LD formation through the activation of lipogenesis, does not affect ADFP mRNA levels. TIP47, another PAT member known to be expressed in liver, was unaffected by all treatments. This constitutively expressed PAT member seems to be less transcriptionally regulated than ADFP.These observations suggest that ADFP is primarily a fasting-induced protein in liver that coats the newly synthesized triacylglycerol-containing LDs formed during fasting. Most tissues are able to store triacylglycerol (TAG), cholesteryl esters (CEs), or lipids in relatively small (,1 mm diameter) lipid droplets (LDs) that can be used as an energy source or for membrane biogenesis (1). Although the interior of those LDs consists largely of neutral lipids, numerous proteins have recently been extracted together with the LD fractions isolated from two different cell lines (2, 3), suggesting that LDs should be viewed more as active intracellular compartments.Vimentin (4), perilipin (5, 6), and mouse adipose differentiation-related protein (ADFP; adipophilin in humans) (7) were the first proteins experimentally demonstrated to associate with the LD surface. This cellular location was more recently also experimentally confirmed for tailinteracting protein of 47 kDa (TIP47) (8, 9) and S3-12 (10). Perilipin, ADFP, and TIP47 exhibit high sequence identity within an N-terminal motif termed PAT-1 (for perilipin, ADFP, and TIP47) and a more distally located PAT-2 domain (9, 11). The N-terminus of S3-12 shares limited identity with the PAT-1 motif, but the protein shares sequence homology with ADFP and TIP47 in the PAT2 domain and the C terminus (12). S3-12 and the PAT proteins have amphipathic 11-mer helical repeats in common. These repeats are also found in other lipid binding proteins, such as synucleins, apolipoproteins, phosphate cytidyltransferases, and dehydrins (13). The PAT proteins and S3-12 are expressed in distinct tissues, suggesting that they have evolved to fine-tune lipid metabolism according to the particular needs of these tissues (12).At present, the LD-associating properties have only been thoroughly studied for ADFP and perilipin (14, 15). Perilipin expression is c...