Insulin activates sterol regulatory element-binding protein-1c in liver, thereby increasing fatty acid and triglyceride synthesis. We created a line of transgenic rats that produce epitopetagged human SREBP-1c in liver under control of the constitutive apolipoprotein E promoter/enhancer. This system allows us to dissect the pathway by which insulin stimulates SREBP-1c processing without interference by the insulin-mediated increase in SREBP-1c mRNA. Rats are used because freshly isolated rat hepatocytes respond much more robustly to insulin than do mouse hepatocytes. The data reveal that insulin-mediated stimulation of SREBP-1c processing requires the mechanistic target of rapamycin complex 1 (mTORC1), which also is required for insulin-mediated SREBP-1c mRNA induction. However, in contrast to mRNA induction, insulin stimulation of SREBP-1c processing is blocked by an inhibitor of p70 S6-kinase. The data indicate that the pathways for insulin enhancement of SREBP-1c mRNA and proteolytic processing diverge after mTORC1. Stimulation of processing requires the mTORC1 target p70 S6-kinase, whereas induction of mRNA bypasses this enzyme. Insulin stimulation of both processes is blocked by glucagon. The transgenic rat system will be useful in further defining the molecular mechanism for insulin stimulation of lipid synthesis in liver in normal and diabetic states. T he liver plays a unique role in lipid metabolism because it is the only organ that synthesizes fatty acids (FAs) and triglycerides (TGs) for export to other tissues. These synthetic processes are controlled reciprocally by insulin and glucagon, which are secreted by the pancreas and delivered directly to the liver via the portal vein. Precise control is important because excess FA synthesis leads to elevated FAs in muscle, thereby contributing to the peripheral insulin resistance and lipotoxicity seen in type 2 diabetes. Excess FA synthesis also causes fatty liver, which sometimes leads to cirrhosis and liver failure (1, 2).Insulin stimulates FA synthesis in liver by increasing the mRNA and the processed nuclear form of sterol regulatory elementbinding protein-1c (SREBP-1c), a transcription factor that activates all the genes needed to produce FAs and TGs in liver (3). Of the three SREBP isoforms, SREBP-1c is the one whose expression is highest in liver, and it is the only one that is controlled primarily by insulin. For this reason, definitive studies of insulin-mediated activation of SREBP-1c must be performed with liver cells.Studies of insulin action on liver cells are difficult because none of the established hepatocyte cell lines responds to insulin with the robustness observed in the livers of living animals. Moreover, freshly isolated hepatocytes lose their insulin responsiveness within 48-72 h after isolation. Therefore, studies must be performed in living animals or with freshly isolated hepatocytes that are less than 72 h old. Even more perplexing are species differences. Although mouse and rat livers manifest robust elevations in SREBP-1c mRNA...