Islets were isolated by mild collagenase digestion and microdissection from rat fetuses 2 days before term and pups 1 or 2 days after birth and their insulin and glucagon secretion studied in vitro. Fetal B cells were stimulated by 16.7 mmol/l glucose, 20 mmol/l leucine or 20 mmol/l arginine. Fetal A cells were not affected by glucose or leucine, but were significantly stimulated by arginine. Somatostatin abolished the effect or arginine on both IRI and IRG output. Neonatal islets proportionally released more insulin and glucagon than their fetal counterparts, but reacted to the tested agents in a similar fashion. During the perinatal period, pancreatic insulin storage increased at a higher rate than that of glucagon. It is concluded that fetal B cells are equipped with sensors to a variety of agents and able to modulate their secretory rate according to the concentration of these agents. A cells are reactive to arginine 2 days before term but do not become glucose reactive until several days after birth.