To study the potential intragonadal role of inhibin and inhibin-related proteins in the developing gonad, a method was developed to culture testicular cells of chicken embryos. A single-step collagenase/DNase digestion was used to disperse the cells. Except for the primordial germ cells and the erythrocytes, the cells attached well to plastic culture dishes. Moreover, they could easily be grown in the absence of serum or other additives. Inhibin secretion was measured using a heterologous radioimmunoassay validated for use in this species. The fetal testicular cells secreted high amounts of immunoactive inhibin and remained responsive to gonadotrophins. Two different cell populations could be recognized in monolayers of testicular cells: the first population had a fibroblast-like stromal appearance, resembling interstitial cells; the second had an epitheloid appearance and contained large numbers of refractile vacuoles, resembling Sertoli cells. Both cell populations were enriched using a Percoll density gradient. The epitheloid cells displayed a higher capacity to secrete immunoactive inhibin, while the stromal cells were responsible for the bulk of androgen secretion. FSH, but also LH, stimulated inhibin secretion in the epitheloid cells. Although ovine LH was the most potent stimulus for androgen secretion by the stromal cells, ovine FSH was also capable of increasing androgen output in stromal cells and to a lesser extent in epitheloid cells. As the two enriched cell populations were still contaminated by other cell types, this may indicate, as in other species, that FSH-induced paracrine factors are involved in the regulation of androgen secretion in the developing gonad.(ABSTRACT TRUNCATED AT 250 WORDS)