Freshly harvested primary rat hepatocytes, which had been entrapped in a synthetic extracellular matrix, were examined for differentiated morphology and enhanced liver-specific functions for long-term culture. A copolymer of N-isopropylacrylamide (98 mol % in the feed) and acrylic acid [poly(NiPAAm-co-AAc)], and the adhesion molecule, Arg-Gly-Asp (RGD), incorporated into a hydrogel, were used to entrap hepatocytes. Over 28 days' culture, the hepatocytes in the RGD-incorporated gel maintained higher viability and produced albumin and urea at constant rates, while there was lower cell viability and less albumin secretion by hepatocytes in poly(NiPAAm-co-AAc). Hepatocytes cultured in the gel with RGD incorporated into it constitutes a potentially useful three-dimensional cell system for application in a bio-artificial liver device.