During embryonic development, the pancreas derives from two separate outgro
wths of endodermal cells called the ventral and dorsal pancreatic buds, The
se buds fuse to form the definitive pancreas. A new study shows that a bipo
tential cell population exists in the embryonic endoderm that gives rise to
both the liver and the ventral pancreas. The decision by these cells to ad
opt either a pancreatic or hepatic cell fate is determined by their proximi
ty to the developing heart.