During embryonic development, the pancreas derives from two separate outgrowths of endodermal cells called the ventral and dorsal pancreatic buds. These buds fuse to form the definitive pancreas. A new study shows that a bipotential cell population exists in the embryonic endoderm that gives rise to both the liver and the ventral pancreas. The decision by these cells to adopt either a pancreatic or hepatic cell fate is determined by their proximity to the developing heart.