The mammalian kidney arises from two key progenitor populations, the metanephric mesenchyme (MM) and the ureteric bud (UB). These are both mesodermal in origin arising from the intermediate mesoderm. The goal of our project is to direct differentiation of pluripotent human ES cells (hESCs) to renal progenitors. A three stage differentiation protocol has been established recapitulating known growth factors involved in the key intermediate steps required to reach kidney; posterior primitive streak (PPS), intermediate mesoderm (IM) and MM/UB. Initial PPS induction was performed by titrating the relative concentration of RA and Activin A to optimize expression of Brachury (T), versus Sox17. Next, we optimised the differentiation from PPS to IM by screening relative concentrations of noggin, BMP4 and FGF2/9. Optimal IM was generated in the presence of FGF9 as assessed by coexpression of PAX2, LHX1 and OSR1. Immunofluroescence confimed the colocation of these proteins. Stage three used a combination of growth factors previously identified as supporting either the survival or growth of either MM or UB. Across these different stages, timecourse RT-PCR showed that gene expression changed in a stepwise manner from PPS to IM then induced simultaneous formation of both MM and UB. To assess the renal potential of these induced cells, we performed 3D aggregates which were cultured as explants. After culture, ECAD+ tubular structures formed in these aggregates some of which were PAX2+ , suggestive of UB, whereas others were LTL lectin positive, suggestive of MM-derived nephrons. SIX2+ MM cells were also maintained in these aggregates. In summary, we demonstrate a method for the stepwise induction of both the UB and MM populations of the kidney from human ES cells and show that these populations have appropriate renal tubulogenic potential in vitro.