If isolated rat hepatocytes are preincubated for 90 min before addition of hormone, glucagon causes a significant (50 %) decrease in fatty acid synthesis without concomitant large decreases in the cellular content of the allosteric activator, citrate. We present evidence that this inhibition can be entirely accounted for by the phosphorylation of the rate-limiting enzyme, acetyl-CoA carboxylase, by cyclic-AMP-dependent protein kinase. In particular : (1) the effect is associated with a 50 % decrease in acetyl-CoA carboxylase activity (measured at physiological citrate concentration) which survives purification of the enzyme; (2) the effect is associated with a selective increase in the phosphorylation of a chymotryptic peptide (peptide 1) which is identical to the peptide containing the major site phosphorylated on purified acetyl-CoA carboxylase by cyclic-AMP-dependent protein kinase ; (3) the effects of glucagon on the kinetic parameters of the enzyme are very similar to the effect of phosphorylation of the purified enzyme, i.e. a decrease in V and an increase in K, for citrate; and (4) all of these effects occur at physiological concentrations of glucagon identical to those producing inhibition of fatty acid synthesis.The main function of fatty acid synthesis in mammals is the conversion of excess carbohydrate into fat, which provides a more concentrated store of energy for long-term utilization. During starvation, carbohydrate must be spared for more critical needs, such as the supply of glucose to the brain. It has been known for some years that glucagon, which is released on starvation, inhibits fatty acid synthesis in the liver [1,2] and that this correlates with a decreased activity of hepatic acetylCoA carboxylase [3,4]. However, the mechanism of this inhibition has not been clear. Acetyl-CoA carboxylase is subject to allosteric regulation, being completely dependent on the fatty acid precursor, citrate, for activity, and being potently inhibited by the end product, long-chain acyl-CoA [5]. Watkins et al. [6] reported that glucagon dramatically inhibited fatty acid synthesis in isolated chicken hepatocytes, and this correlated with a 90% decrease in cytosolic citrate levels. More recently, it has been proposed that phosphorylation of acetyl-CoA carboxylase is an important mechanism of regulation of fatty acid synthesis. This was first suggested by experiments with partially purified rat liver acetyl-CoA carboxylase [7] and our laboratories have now shown that the homogeneous rat mammary [8] and rat liver [9] enzymes can be phosphorylated and inactivated by cyclic-AMP-dependent protein kinase, both effects being reversed by addition of purified protein phosphatase. We have also characterized the protein phosphatases in rat liver which catalyze the dephosphorylation and reactivation [lo].Acetyl-CoA carboxylase becomes labelled when isolated rat [4] and chicken [Ill hepatocytes are incubated with [32P]phosphate. However, while glucagon clearly stimulates this phosphorylation in rat hepatocytes [4], i...