Erythroid progenitor cells were obtained from rat fetal liver by immunolysis of the whole erythroid population with an antiserum directed against adult rat erythrocytes, followed by separation on a density gradient. Immediately after their isolation, these cells contained only minute amounts of globin mRNAs and their heme synthesis was negligible. In the absence of erythropoietin (Epo), they did not proliferate or differentiate. In the presence of Epo, they proliferated, synthetized heme and globins actively, accumulated large amounts of globin mRNAs, and developed hemoglobinized colonies in methylcellulose. Hemin, in concentrations of 5-100 microM, induced, in the absence of Epo, the proliferation and differentiation of these cells (e.g., accumulation of globin mRNAs, synthesis of heme and globins, and increased density of membrane antigens characteristic of the erythrocyte). Nevertheless, Epo and hemin actions were not superimposable: in methylcellulose, Epo induced the appearance of large (greater than or equal to 32 cells) hemoglobinized colonies in 48 h, whereas hemin induced smaller and fewer colonies in only 24 h. Succinylacetone (SA, inhibitor of heme synthesis) mostly prevented the effects of Epo on cell proliferation and differentiation; SA inhibition was relieved by hemin. Thus, hemin seems to intervene in erythroid differentiation as a factor of both proliferation and maturation.