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Abstract Differentiation of hepatic precursor cells in the biliary lineage has rarely been investigated, owing to the lack of convenient in vitro models. In this study, we used sodium butyrate and culture on Matrigel to promote differentiation of WB-F344 rat liver epithelial cells along the biliary phenotype. This differentiation was assessed by following the expression of phenotypic markers at the protein or mRNA level. Sodium butyrate induced cytokeratin 19 expression and gamma-glutamyltranspeptidase activity, together with a large increase in gamma-glutamyltranspeptidase mRNA IV, a transcript expressed at high levels in biliary cells. We also observed an increase in aquaporin-1 and β4 integrin mRNAs, encoding two proteins expressed in adult biliary cells. Culture on Matrigel increased cytokeratin 19, gamma-glutamyltranspeptidase, and BDS7 expression in WB-F344 cells which still expressed aquaporin-1 and β4 integrin. These results show that WB-F344 cells are able to differentiate in vitro along the biliary pathway, making them a candidate model for analyzing the molecular events associated with the hepatoblast-biliary cell transition. [ABSTRACT FROM AUTHOR]