A BAC clone containing the Hnf1b locus (RP23-304H7) was modified by replacing exon 1 with a targeting vector containing an Hnf1b promoter fragment, cre/ERT2, IRES, d2EGFP (a destabilized variant of EGFP), the b-globin polyadenylation site, a FRT/neo/FRT cassette, and an intron 1 fragment that flanks exon 1 of Hnf1b. The targeting vector was electroporated into EL250 cells and homologous recombination was induced. Correctly targeted clones were treated to activate inducible Flp recombinase, removing the FRT/neo/FRT cassette. The recombined BAC was digested, linearized and microinjected into pronuclei of C57BL6/SJL eggs. 10 lines were generated, and after crossing to Rosa26 reporter mice, one line carrying a single copy of the transgene was maintained (after characterization of 4 lines exhibiting similar reporter recombination patterns.) (J:156016)