The effect of the presence or absence of androgen during the neonatal period on territorial marking behavior in the Mongolian gerbil was studied. Scent marking frequency was 20-40 fold greater in males than in females. Gonadectomy depressed marking in males but not in females. Testosterone propionate (TP) therapy completely restored marking in male but increased marking in intact and ovariectomized females to only one fourth that in males. Genetic males castrated within 2 days postpartum did not mark more frequently than TP-treated females after TP treatment in adulthood. Genetic females given a single TP injection within 6 days postpartum marked at male levels after TP treatment in adulthood. Males castrated after Day 2 and females given TP after Day 6 displayed marking frequencies intermediate between normal male and female levels after TP treatment in adulthood. This study suggests that sexual dimorphism in territorial marking behavior is due to a sex difference in the competency to respond to androgen, and it appears that development of this competency occurs during the neonatal period and is regulated, at least in part, by androgen. The onset of this differentiation process occurs earlier in the male than in the female.