The maintenance of normal glucose homeostasis is dependent on a finely balanced dynamic interaction between tissue (muscle and liver) sensitivity to insulin and insulin secretion. Even in the presence of severe insulin resistance, a perfectly normal β‐cell is capable of secreting sufficient amounts of insulin to offset the defect in insulin action. Thus, the evolution of type 2 diabetes requires the presence of defects in both insulin secretion and insulin action, and both of these defects can have a genetic as well as an acquired component. When type 2 diabetic patients initially present to the physician, they will have had their diabetes for many years, and defects in insulin action and insulin secretion will be well established. At this stage, it is not possible to define which defect came first in the natural history of the disease. Nevertheless, it is now clear that in any given diabetic patient, whatever defect (insulin resistance or impaired insulin secretion) initiates the disturbance in glucose metabolism, it will eventually be followed by the emergence of its counterpart.