Furosemide, an ototoxic diuretic, was administered intravenously while rate- and phase-level functions of auditory nerve fibers were measured in the cat. Normal level functions can demonstrate two components distinguished by an abrupt shift in the phase of the response as the sound level is increased. Furosemide, administered at doses that decrease the endocochlear potential, selectively reduces the discharge rate in response to tones at sound levels below that of the abrupt phase shift.