Ketone bodies serve a dual function in developing brain. They are important sources of energy for metabolism and serve as precursors for lipid synthesis. Astrocytes have two to three times higher activity than oligodendroglia for one of the enzymes involved in ketone body metabolism, 3-ketoacid-CoA transferase. Both glial cell types have similar levels of activity for beta-hydroxybutyrate dehydrogenase. Glucocorticoids and dibutytyl cAMP produce a significant stimulation of activity of both enzymes in astrocytes and oligodendroglia. However, the most striking induction in activity of the two enzymes is in the presence of hydrocortisone and sodium butyrate. There is a three- to eightfold stimulation with these effectors in both astrocytes and oligodendroglia. Thus, in brain the expression of ketone body enzyme activities is finely regulated by hormones and by agents that increase cAMP levels.