Primary cultures of dispersed hypothalamic cells were prepared from embryonic rats to study the release of immunoreactive somatostatin. The immunoreactive somatostatin content of these cultures increased during the first 2 weeks after plating and was readily measurable for several weeks thereafter; this material was characterized by gel permeation and reverse-phase chromatography. Depolarization of the cells with 60 mM K+ or with veratridine resulted in a calcium-dependent release of immunoreactive somatostatin which cochromatographed with synthetic somatostatin on reverse-phase chromatography. Tetrodotoxin blocked the veratridine-evoked release. However, even in the absence of exogenous stimuli, immunoreactive somatostatin was released by the cells into the medium. More than 70% of this tonic release was found to be calcium dependent and to be inhibited by tetrodotoxin, indicating that spontaneous electrical activity in the cultures leads to a release of immunoreactive somatostatin. gamma-Aminobutyric acid inhibited the tonic release of immunoreactive somatostatin and this was reversed by bicuculline. These findings support the hypothesis that gamma-aminobutyric acid inhibits somatostatin release in vivo.