Airway hyper-responsiveness and epithelial cell damage are associated commonly with asthma. The airway epithelium is a physical barrier that protects sensory nerves and smooth muscle from stimulation by inhaled irritants. In addition, epithelial cells release mediators that can inhibit bronchoconstriction by relaxing the underlying smooth muscle: so-called 'epithelium-derived relaxing factors' (EpiDRFs). Clear functional evidence for EpiDRFs is provided by experiments where different endogenous mediators induce the relaxation of tracheas containing epithelium, but cause a contraction in preparations lacking this layer. Here, Gert Folkerts and Frans Nijkamp describe the pharmacological relevance of the putative EpiDRFs, prostaglandin E2 and NO, in the modulation of airway tone under basal conditions in vitro and in vivo. Special attention is paid to the role of both EpiDRFs in the development of airway hyper-responsiveness in animal models and in patients with asthma.