Cholesterol 7␣-hydroxylase is a rate-limiting enzyme in bile acid synthesis, a major pathway for cholesterol catabolism. It plays a crucial role in postnatal development and survival. In an adult liver, its activity and messenger RNA (mRNA) are heterogeneously distributed with concentration in the pericentral area. We defined how the pattern of cholesterol 7␣-hydroxylase mRNA evolves during rat liver development, correlated this with its total liver mRNA levels, and determined when its heterogeneous pattern of expression is established. Cholesterol 7␣-hydroxylase mRNA was undetectable in 18-day-old fetal livers by Northern blot. It was increased markedly in newborns with a homogeneous liver lobular distribution as determined by in situ hybridization. At postnatal day four, mRNA levels were markedly decreased with concomitant appearance of a lobular gradient: mRNA was detected only in a few hepatocytes located around efferent venules. At 22 days, the time of highest mRNA expression, a marked extension of the gradient towards the periportal area was observed, indicating that the increase in total liver cholesterol 7␣-hydroxylase mRNA level was a result of recruitment of hepatocytes upstream from the central vein area. By 28 days, the adult pattern was observed. Thus, expression of cholesterol 7␣-hydroxylase mRNA is tightly regulated during rat liver development, both temporally and spatially supporting its critical role in normal postnatal development.(HEPATOLOGY 1998;28:1064-1072.)Bile acids play a key role in absorption of lipids, including fat-soluble vitamins. Bile acid synthesis represents the major regulated pathway for catabolism and excretion of cholesterol in mammals. The hepatospecific enzyme cholesterol 7␣-hydroxylase (C7␣H; EC 1.14.13.17; CYP7A) catalyzes a rate-limiting step in this important process. [2][3][4] Its activity is tightly regulated in vivo by a number of different effectors acting predominantly at the transcriptional level. C7␣H is modulated by hormones, including thyroxin, glucocorticoids, and insulin 5-7 ; and by dietary factors. [8][9][10] It is regulated in a negative feedback manner by hydrophobic bile acids returning to the liver via the enterohepatic circulation. 11-13 It exhibits a diurnal rhythm, with maximum activity in the dark phase and minimum during the light phase in rats. [13][14][15] The expression of C7␣H in adult rats is tightly regulated spatially along the liver cell plate; the enzymatic activity 16 and mRNA level 17,18 are not distributed uniformly among parenchymal cells; rather, C7␣H is predominantly found in a subgroup of hepatocytes localized around the central vein.Liver cell heterogeneity is considered to be a major determinant for proper execution and regulation of most liver functions. 19,20 It reflects differentiation of hepatocytes within the liver plate, which is established during development. In most cases, it is regulated at the transcriptional level. The role of liver cell heterogeneity in the developmental regulation of bile acid synthesis is unknown....