Oval cells isolated from livers of carcinogen-treated rats have morphologic and biochemical features of immature hepatocytes but seem to lack glucose-6-phosphatase (G6Pase) activity. The authors reinvestigated this question using histochemical methods for visualization of G6Pase activity by light and electron microscopy and the polyene antibiotic filipin to facilitate the penetration of the substrate. Oval cells that proliferate in the liver of animals receiving a carcinogenic diet (choline-deficient, containing 0.05% ethionine) contained G6Pase activity; 50-60% of nonparenchymal epithelial cells isolated from these livers by centrifugal elutriation contained G6Pase activity; and oval cell cultures displayed intense G6Pase activity at confluence but did not have detectable enzyme activity during exponential growth. These results and the demonstration that clofibrate induces peroxisomal proliferation in cultured oval cells strengthen the view that oval cells (or some subpopulation of cells in this compartment) are part of the hepatocyte lineage.