Proliferation during kidney development can be stimulated with an iron chelator, ferric pyridoxal isonicotinoyl hydrazone (FePIH). Neither the starting products nor the intermediary in FePIH synthesis stimulated proliferation. Thus, the growth-promoting effects of FePIH are due to the iron ion. Some other low molecular weight, saturated iron chelators such as glycyl-histidyl-lysine acetate, nitrilotriacetic acid, ascorbate, citrate, and unchelated ferrous sulfate could not support as high a degree of proliferation as FePIH or transferrin. FePIH delivered just slightly less radioactive iron into the trichloroacetic acid-precipitable fraction than transferrin. The octanol/saline partition coefficients of radioactive iron in solution with transferrin, nitrilotriacetic acid, or chloride were all less than 0.06. Thus, these compounds cannot efficiently traverse the lipid membrane. On the other hand, Fe3+ carried by PIH had a partition coefficient of 0.96. Hence, FePIH can stimulate proliferation because it can carry iron through the lipid membrane. Transferrin is not lipophilic but it delivers iron by receptor-mediated endocytosis.