Antidiuretic hormone (ADH) stimulated formation of inositol 1,4,5-trisphosphate (IP3), 1,2-diaclyglycerol (DAG) and an increase of phosphatidylinositol 4,5-biphosphate (PIP2) breakdown in the frog urinary bladder 20 s after addition. ADH also increased the prostaglandin E (PGE) secretion into serosal medium 3.5-fold and the release of arachidonic acid (AA) from 1,2-DAG, which was intensified in the presence of DAG kinase inhibitor R59022. Neomycin sulphate (10(-5) M) from the serosal side blocked ADH-stimulated PIP2 hydrolysis, IP3 production and increased the hydro-osmotic response to ADH. It also inhibited the ADH-stimulated PGE production (55%) and release of AA from 1,2-DAG. This data suggest that PIP2 breakdown is involved in the mechanism of feedback regulation of ADH action and is associated with PGE production via (i) the increase of AA release from PIP2-generated 1,2-DAG and (ii) possible activation of phospholipase A2 by IP3-induced elevation of cytosol Ca2+.