The blood-brain barrier (BBB) in mammals is created and maintained by cerebral endothelial cells (cEC) that express specialized functional properties, including intercellular tight junctions, absence of fenestrae and specific membrane transport systems. It has been proposed that the differentiation of these characteristics, acquired during brain development, is controlled by the neural environment. Co-culture experiments of cloned cEC with astroglial cells, C6 glioma cells and cortical neurons, with plasma membranes or conditioned media of these cells, were used to study induction of some BBB characteristics in vitro. Activities of Na+,K(+)-ATPase and gamma-glutamyl transpeptidase (GGTP), an enzyme responsible for amino acid transport across the BBB, were taken as parameters for BBB function. Co-culture of cEC with C6 glioma cells caused a two-fold increase in GGTP activity and this activity was likewise amplified by incubation with plasma membrane fractions derived from C6 glioma cells, embryonic brain cells and cortical neurons; conditioned media (soluble factors) had no effect. Na+,K(+)-ATPase activity, estimated from the ouabain inhibitable fraction of 86Rb uptake, was increased by about 90% in cEC incubated with C6 glioma plasma membranes. We propose from these data that both neurons and glial cells confer BBB characteristics on cEC via cell-cell contact.