Recent studies have established that lysophosphatidic acid (LPA) is produced by a wide variety of cell types, and that most mammalian cells express receptors for LPA. These findings raise the hypothesis that LPA acts as an autocrine mediator to initiate signaling in the cells where it is produced, as well as a paracrine mediator to affect neighboring cells. The extent to which these scenarios occur will depend on the species of LPA generated, the LPA receptors expressed, and the ability of these receptors to bind to the LPA produced. The enzymes involved in LPA synthesis and their cellular localization in relationship to LPA receptors are also likely to be important. Studies addressing these issues with respect to the potential roles of LPA as an autocrine and paracrine mediator are reviewed, with examples.