Noradrenaline and neuropeptide Y (NPY) in the hypothalamus regulate a number of important endocrine and autonomic functions. Alterations in brain neurotransmitter content have been described in type 1 diabetes but there is little understanding of whether these changes affect neurotransmitter release. This study examined for the first time, region-specific co-release of NPY and noradrenaline from the hypothalamus of male Sprague-Dawley rats treated intravenously with 48 mg/kg streptozotocin (STZ) or vehicle. Five weeks later, the release of endogenous noradrenaline and NPY was monitored by in vitro superfusion of ventral and dorsal hypothalamus slices under basal and potassium-stimulated conditions. STZ-diabetes induced significant increases in basal noradrenaline and NPY overflow from the ventral hypothalamus (P<0.05); only NPY overflow was increased in the dorsal hypothalamus (P<0.05). Noradrenaline overflow increased similarly to potassium depolarisation in vehicle and STZ-diabetic rats, whereas diabetic rats showed a significantly increased NPY overflow response to potassium depolarisation compared to vehicle rats. These region-specific increases in endogenous noradrenaline and NPY overflow from the hypothalamus in diabetes suggest increased neuronal activity at rest and enhanced responses under some conditions. Increased hypothalamic NPY and noradrenaline overflow most likely contributes to diabetic hyperphagia.