The hydrolysis of long-chain monoester of ethanediol by rat,liver subcellular fractions was investigated in order to define the carboxylic acid ester hydrolase involved and to localize the enzymic activity. We found that with 1-O-hexadecanoyl [U-14C]ethanediol as substrate, hydrolytic activity was foremost associated with the rough microsomal fraction. The pH optimum occurred at 8.5. The apparent Km and V values were 6.5 . 10(-4) M and 13 mumol/h per mg microsomal protein, respectively. Enzymic activity was inhibited by p-chloromercuribenzoate and by diisopropylfluorophosphate, whereas NaF was less effective and CaCl2 did not affect apparent activity. Amongst a number of carboxylic acid esters tested as substrate, only long-chain 1-acyl and 2-acyl glycerols inhibited acyl diol hydrolysis competitively (Ki approximately 0.9 mM). It was concluded that long-chain monoesters of ethanediol are hydrolyzed by the monoacyl glycerol lipase system associated with the rat liver microsomal fraction. Because diol monoester is also utilized by the cholinephosphotransferase system of liver to form highly lytic acyl diol phosphocholines, efficient diol monoester hydrolysis by monoglyceride lipase may be a significant step in regulating acyl diol phosphocholine levels in biological systems.