There is provided a method of differentiating an induced pluripotent stem cell (iPSC) into a renal proximal tubular cell (PTC)-like cell. The method comprises culturing an undifferentiated iPSC in a renal epithelial cell culture medium in the presence of one or more extracellular matrix (ECM) molecules, bone morphogenic protein 2 (BMP2) and bone morphogenic protein 7 (BMP7), for a period of from about 8 to about 10 days, under conditions sufficient to induce differentiation of the iPSC into a PTC-like cell. A cell population of differentiated PTC-like cells is also provided, as well as uses and methods of use of the cell population.