The development of insulin receptors and insulin-stimulated receptor autophosphorylation were studied in livers of prenatal and neonatal rats. Insulin receptors were present in mid-gestation, as early as day 14 in fetal development (full term is 22 days in the rat), with ligand-activated receptor kinase present. In contrast, insulin-stimulated phosphorylation of a Mr 120 kd glycoprotein derived from rat liver membranes, known as pp120/HA4 and more recently identified as ecto-ATPase, was not observed in fetal liver until day 17 of gestation. Thereafter, phosphorylation of pp120/HA4 increased throughout late gestation. The data suggest that maturation of the insulin receptor kinase occurs soon after initial appearance of the receptor in mid-gestation, but insulin-stimulated phosphorylation of endogenous substrate(s) is dependent on the appearance of specific substrates, such as pp120/HA4.