Individual liver cells, distinguished by their anatomical localization within the portal triad and their relative expression of genes, allow the liver to provide diverse anabolic and catabolic functions. Hepatocytes localized near the portal vein express high levels of lipogenic (1) and gluconeogenic (2) enzymes, whereas those localized near the central vein express high levels of catabolic (CYP7A1) (3, 4) and glycolytic (2) enzymes. Environmental differences caused by hormonal, nutritional, and xenobiotic variations in portal versus central blood result in zonal distinctions in the gene expression of transcription factors within the hepatic acinus (5). The molecular mechanisms responsible for the distinct subsets of genes expressed by individual liver cells remain unknown. We have derived and characterized stable lines of rat hepatoma cells in order to identify the molecular mechanisms responsible for the phenotypic expression of the anabolic lipoprotein assembly pathway regulated by microsomal triglyceride transfer protein (MTP) 1 and the catabolic pathway through which cholesterol is converted into bile acids by the rate-limiting enzyme CYP7A1.The liver is the major site for both the production of plasma lipoproteins and their uptake from plasma and catabolism (reviewed in Ref. 6). The production of apolipoprotein B (apoB)-containing lipoproteins by the liver is mainly regulated by the relative amount of de novo synthesized apoB that is translocated into the endoplasmic reticulum and assembled into a secretion-competent lipoprotein particle (7-10). MTP, an intraluminal protein in the endoplasmic reticulum (11), plays an important role in regulating the assembly and secretion of apoB-containing lipoproteins (12-16). In humans, the loss of MTP function blocks the production of apoB-containing lipoproteins by both the intestine and the liver (11). On the other hand, the catabolic bile acid biosynthetic pathway, regulated by CYP7A1, is the major route through which hepatic (and total body) cholesterol homeostasis is maintained (17-20). Hepatic cholesterol levels indirectly regulate the expression of low density lipoprotein receptors via changes in serum response element (SRE)-binding proteins (21). Thus, the expression of CYP7A1 indirectly regulates the expression of low density lipoprotein receptors (22,23). Bile acids, which are the end products of the CYP7A1 reaction, stimulate the secretion of phospholipids and cholesterol into bile (24). Thus, the relative expression levels of MTP and CYP7A1 by individual hepatic parenchymal cells are important determinants of whether phospholipids and cholesterol are targeted into plasma (lipoproteins) or bile (biliary lipids).We have isolated stable cell clones from rat hepatoma cells as