The effects of increased biliary resistance on bile secretion and biliary permeability properties were studied in rats. High biliary resistance produced significant reductions in bile flow and the secretion rate of cholesterol, but did not modify bile salt and phospholipid secretory rates. Decreased bile flow appeared to be secondary to a marked reduction in bile salt-independent fractions of bile flow, and bile salt-dependent flow was simultaneously increased. 14C-erythritol and 3H-inulin clearance studies suggest that decreased net canalicular secretion of water rather than increased water reabsorption at the biliary ducts is the mechanism involved in decreased bile flow. In addition, a marked increase in canalicular permeability to inulin was evident when rats were secreting against increased biliary resistance as well as during recovery.