Cholangiocytes line the intrahepatic bile ducts and regulate salt and water secretion during bile formation, but the mechanism(s) regulating ductal water movement remains obscure. A water-selective channel, the aquaporin CHIP, was recently described in several epithelia, so we tested the hypothesis that osmotic water movement by cholangiocytes is mediated by CHIP. Isolated rodent cholangiocytes showed a rapid increase in volume in the presence of hypotonic extracellular buffers; the ratio of osmotic to diffusional permeability coefficients was >10. The osmotically induced increase in cholangiocyte volume was inversely proportional to buffer osmolality, independent of temperature, and reversibly blocked by HgCl2. Also, the luminal area of isolated, enclosed bile duct units increased after exposure to hypotonic buffer and was reversibly inhibited by HgCl2. RNase protection assays, anti-CHIP immunoblots, and immunocytochemistry confirmed that CHIP transcript and protein were present in isolated cholangiocytes but not in hepatocytes. These results demonstrate that (0) isolated cholangiocytes and intact, polarized bile duct units manifest rapid, mercury-sensitive increases in cell size and luminal area, respectively, in response to osmotic gradients and (it) isolated cholangiocytes express aquaporin CHIP at both the mRNA and the protein level. The data implicate aquaporin water channels in the transcellular movement of water across cholangiocytes lining intrahepatic bile ducts and provide a plausible molecular explanation for ductal water secretion.Bile formation by the liver involves secretion of bile by hepatocytes and delivery to a network of interconnecting ducts where bile is modified by cholangiocytes, the epithelial cells that line these conduits inside the liver. Bile secretion by cholangiocytes contributes to total bile flow through the spontaneous and agonist-induced secretion of both ions and water (1). While data have been accumulating on the cellular mechanisms regulating ion transport by cholangiocytes (2-4), the mechanisms regulating water movement across biliary epithelia remain undefined (5, 6).Conceptually, water may move across biliary epithelia by two pathways: a paracellular pathway between cholangiocytes or a transcellular pathway across both the apical and basolateral cholangiocyte plasma membranes (5, 7). Further, transcellular water movement may occur by simple diffusion across the lipid bilayer or through discrete membrane proteins that form water channels (8). A family of membrane water channels, referred to as aquaporins, was recently identified (9). The aquaporin CHIP [ghannel-forming integral membrane protein of 28 kDa] is the first characterized molecular water channel (10). When expressed in Xenopus laevis oocytes (11) or reconstituted into proteoliposomes (12), CHIP behaves as an osmotically driven, water-selective pore capable of transporting water across the plasma membrane in a rapid, relatively temperature-independent and mercury-sensitive manner. Moreover, immunohistochem...