In studies to determine the effect of cream quality, pasteurization temperature, and storage temperature on the development of lipase flavor in butter, raw cream, fresh and aged 24h, was divided into three fractions and heated at 72C, 85C, and 93C, respectively, for 18s. Each fraction of cream was churned into butter, which was divided and stored at −28.9C and 4.4C. Lipase flavor development was measured organoleptically, by acid degree value, and by free fatty acid concentration. Age of the cream significantly affected free fatty acid and acid degree values whereas heat treatment of the cream affected free fatty acids, acid degree values and flavor, and the temperature of storage affected free fatty acids and flavor. Correlation between free fatty acids and acid degree values was .86. There was no correlation between flavor and either free fatty acids or acid degree values.