Just over a decade ago it was thought that osteoclasts and osteoblasts were derived from a common precursor (osteoprogenitor) cell which had the capacity to develop into either cell type depending on the local stimulus (1,2). The possibility of interchange between osteoclasts, osteoblasts, and their precursors was also an actively debated question (3,4). Recently our understanding of this subject has undergone substantial revision as evidence has accumulated to show that, in the postnatal organism, the two main differentiated cells in bone, osteoclast and osteoblast, are derived from the hemopoietic and stromal cell systems in marrow, respectively (5,6). In addition experimental data support the conclusion that there is no transformation between cells of the hemopoietic and stromal systems, nor a pluripotent stem cell capable of giving rise to both tissues. In view of this, transformation between cells of the osteoclastic and osteoblastic lines is unlikely. It is the purpose of the present article to review some of the available evidence on these subjects.