Lipid synthesis in fetal skin may be important both for the development of a mature epidermal permeability barrier and for growth. In these studies, we measured cutaneous cholesterol, sphingolipid and fatty acid synthesis during the critical period of epidermal barrier development in fetal rats to determine whether barrier function influences synthetic rates. In addition, the activities of HMG CoA reductase, serine palmitoyl transferase and acetyl coenzyme A carboxylase were evaluated. In whole skin, synthesis of cholesterol, ceramide, sphingomyelin and fatty acid decreased from day 17 to day 21 of gestation, as did the activity of HMG CoA reductase, serine palmitoyl transferase and acetyl coenzyme A carboxylase. In both the epidermis and dermis, a decrease in cholesterol, ceramide, sphingomyelin and fatty acid synthesis was measured over days 19-21 of gestation. Epidermal HMG CoA reductase activity also decreased over this same time period. In summary, epidermal and dermal synthetic rates and enzyme activity were highest early in gestation when the barrier was least competent and decreased as competence was achieved. Since other studies with mature animals have revealed that epidermal synthetic rates and enzyme activity are highest when barrier disruption is maximal, enhanced epidermal lipid synthesis precedes the establishment of a competent barrier in both fetal and mature rodents.