Class I alcohol dehydrogenase (ADH) is the principal enzyme responsible for ethanol oxidation in mammals. Although primarily regarded as an enzyme that functions in the adult, Class I ADH has been reported to be present in fetal tissues. By in situ hybridization, we demonstrated the tissue localization of the Class I ADH transcript in developing rat fetuses between Days 15 (E15) and 18 (E18) of gestation. Abundant transcripts were present in epidermis, lung, and urinary bladder. In these tissues, the messages were localized primarily to the superficial layer of the epithelium and increased with development. The liver exhibited significant signals only in the E18 fetus, when parenchymal hepatocytes first appeared. The E15 and E16 small intestines, with their epithelium arranged in a stratified fashion, displayed signals in the submucosal mesenchymal layer. By E17, a rearrangement of the intestinal epithelium into an almost monolayer configuration was observed. This change was associated with a redistribution of the ADH transcript to the surface of the epithelium. Further relocation of the messages was noted in the adult small intestine, in which they became concentrated in the base of the crypt. These findings indicate that expression of the rat class I ADH gene follows a dynamic course in specific epithelial tissues during fetal development. In addition, the apparent superficial localization of the ADH message in most of these tissues suggests that ADH functions in metabolizing either endogenously or exogenously derived alcohol substrates present in the fetal environment.