1. An experimental model system was developed in the rabbit to study the transport of iron and the erythropoietic response to chronic bloodletting. 2. This model presents certain novel features as the capacity to measure total red blood cell production and total hemoglobin production in a daily basis. 3. Daily red blood cell production and output of hemoglobin are directly proportional to the volume of blood extracted. The limits of the erythropoietic response were determined. 4. When only minimal bloodletting was performed (3-6 ml blood/kg body weight) a normocytic response was obtained; with the removal of larger volumes of blood, a switch to macrocytic anemia was observed. Cats and guinea pigs responded in a similar fashion. 5. After induction of macrocytic anemia, the diameter of erythroid precursor cells in the bone marrow of the long bones increased and their numbers increased 11.5-fold.