At the end of the third larval instar of Drosophila melanogaster, larval serum proteins 1 and 2 (LSP‐1 and ‐2) are taken up by cells of the fat body. Here, we show that the product of the ecdysteroid‐inducible gene Fbp‐1 (Fat Body Protein 1) is the receptor that binds LSP‐1. Transcription and translation of Fbp‐1 is stage‐specifically restricted to the end of the third larval instar, starting around 99 h after egg laying. Expression of Fbp‐1 is induced by a low level of 20‐hydroxy‐ecdysone (≥ 10−7 m). After translation, the FBP‐1 protein is thought to be proteolytically cleaved in three subsequent steps. The final cleavage step is delayed by 6 h and relies on a higher concentration of ecdysone (≥ 10−5 m). Therefore, 20‐hydroxy‐ecdysone regulates Fbp‐1 expression and function at two different levels. To the best of our knowledge, this study is the first to date to demonstrate two distinct functions for different concentrations of a steroid hormone on a single biochemical process.