The mechanisms by which hepatic function is maintained after extensive parenchymal loss are unclear. In this study, we propose a novel concept of "functional heterogeneity" of hepatocytes based on their different expression of acetylated histones, the markers of active gene transcription, to explain the powerful compensatory capability of the liver. In the healthy human liver, only a fraction of the hepatocytes were marked by acetylated histones (ac-H2AK5, ac-H2BK5, ac-H3K9, ac-H3K14, ac-H3K27, and ac-H3K9/14). With the progression of cirrhosis, the ratio of the positive cells was gradually elevated, accompanied by the gradual exhaustion of the negative cells. By examining the global transcriptome of the mouse hepatocytes, we observed that the primed genes in the positive cells were much more numerous than those in negative cells. In a 70% hepatectomized mouse, the remnant hepatocytes were extensively activated, and the liver function was well maintained even when regeneration was severely inhibited. The functional compensation was absolutely dependent on the elevated expression of acetyl-histones. Additionally, when liver regeneration was blocked, the metabolism-related genes seemed to be preferentially transcribed. In conclusion, we demonstrate that normally, part of the active hepatocytes are competent for routine physiological requirements. The inactive hepatocytes, delicately regulated by acetyl-histones, act as a functional reservoir for future activation to restore the liver func- The liver has a unique regenerative capacity that restores its mass and function after diverse injuries, including a 70% to 95% partial hepatectomy (PH) in rodents and humans, by the proliferation of differentiated hepatocytes.1-3 Liver regeneration is commonly considered to be the adaptive process by which liver structure and function are recovered. However, in some cases, rodents can survive for an extended period of time after a 70% PH even when liver regeneration is chemically disrupted. 4 -6 Similarly, despite the on-going decrement of hepatocytes, patients suffering from chronic cirrhosis can keep their liver function normal for many years. [7][8][9] This evidence suggests that the remnant liver can compensate for the initial loss of hepatic function independent of cell mass recovery. The powerful compensatory capability of the liver raises an interesting question: why does the body need so many hepatocytes when a minority of the liver mass seems competent? We hypothesize that only a subset of hepatocytes is functionally active at any given time, or each individual hepatocyte is only partially active. The subset of the inactive or the incompletely activated hepatocytes, therefore, acts as a functional reservoir that can be invoked for functional compensation. Molecular