Medullary and cortical tubular cells were prepared from rat kidneys with collagenase treatment. Arginine vasopressin (AVP) stimulated cyclic AMP production both in medullary and cortical cells with a dose-response relationship at concentrations ranging from 10 microU/ml to 10 mU/ml, whereas parathyroid hormone (PTH) and calcitonin did only in the latter. Using this medullary cell system, effects of acute changes in endogenous plasma AVP levels in vivo on its cyclic AMP responsiveness to AVP (10 mU/ml) in vitro were examined. Acute elevation of plasma AVP levels induced by ip injection of 20% (w/v) polyethylene glycol-isotonic saline solution 3 h prior to sacrifice resulted in a 33% decrease in cyclic AMP responsiveness to AVP (desensitization). More prolonged elevation of plasma AVP levels by water restriction for 48 h, on the other hand, increased the responsiveness by 38 to 81%, which was restored to basal levels by ad libitum intake of water for another 48 h (positive feedback regulation). These maneuvers did not alter the cyclic AMP responsiveness to PTH (10 micrograms/ml) in cortical cells. The results suggest that AVP-stimulated adenyl cyclase in rat renal medulla may be regulated by changes in endogenous AVP levels even within the physiological range.