To evaluate the effects of steroids entering the epididymis in rete testis fluid on testosterone (T) metabolism by the epididymal epithelium, principal cells were isolated from the proximal caput, distal caput or corpus epididymidis by enzymatic dissociation and elutriation and were cultured at 34 degrees C within a floating collagen matrix. The culture medium was supplemented with T, dihydrotestosterone (DHT), T plus estradiol-17 beta (T + E) or T plus progesterone (T + P) at concentrations which were approximately physiologic. Metabolism of T by principal cells incubated for 2.5 days with DHT was lower (P less than 0.05) than for control cells cultured with T. Inclusion of E or P in the culture medium lowered (P less than 0.05) metabolism of T by principal cells from each region. However, principal cells cultured with T + P for 2.5 days and then washed and cultured for 12 h with T alone, metabolized T as well (P less than 0.05) as cells never exposed to P. In marked contrast to the persistent suppressive effect of DHT, the suppressive effect of P on metabolism of T is rapid, direct and rapidly reversible. Thus, metabolism of T by principal cells in the epididymal epithelium may be modulated by steroids (E + P) in rete testis fluid or by steroids (DHT) produced locally in the epididymis.