Rats were trained on a conditional discrimination task in which saccharin was paired with LiCl in one context but paired with saline in another context. Rats drank less saccharin in the danger context than in the safe context, and consumption in the home cage was intermediate to consumption in the two training contexts. Rats also avoided the danger context on a choice test. After discrimination training, rats were given extinction trials with the danger context alone (Experiment 1 and 2) or with the danger context+water (Experiment 2). Extinction trials with the context+water abolished contextual control over saccharin consumption but not the avoidance of the danger context on the choice test. Extinction trials with the context alone abolished avoidance of the danger context but not contextual control over saccharin consumption. These data suggest that occasion setting, not simple context conditioning, is the mechanism by which contextual cues modulate fluid consumption.