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Diabetes mellitus is a major and growing health problem worldwide and an important cause of prolonged ill health and early death. It is a chronic metabolic disorder characterized by a high blood glucose concentration (hyperglycemia) caused by insulin deficiency and it is often combined with insulin resistance. Glipizide an important drug of the sulphonyl urea class, is currently available for treating hyperglycemia in Non-insulin dependent diabetes mellitus (NIDDM), but has been associated with severe and sometimes fatal hypoglycemia and gastric disturbances, such as nausea, vomiting, heartburn, anorexia and increased appetite after oral therapy. Because anti diabetic drugs are usually intended to be taken over a long period, patient compliance is also very important. Glipizide (molecular weight 445.5 Daltons) showed favorable partition coefficients (log octanol/buffer: 0.36 ± 0.08; isopropyl myristate/buffer: 0.28 ± 0.12) and negligible skin degradation. Hence, in the present study, we have formulated membrane-moderated transdermal systems of Glipizide.