The multiple indicator dilution technique was used to investigate octanoate transport in the isolated, perfused rat liver. The form of the octanoate outflow profiles depends on albumin concentration. The steady-state intracellular octanoate concentration and the rate of uptake increase when the albumin concentration is decreased. At physiological albumin concentrations, the intracellular concentration of octanoate is only 7% of the extracellular concentration. Exchange between the intra- and extracellular space, however, is very rapid, irrespective of the albumin concentration and consequently exchange is not rate limiting for metabolism.