This invention relates to cerebrospinal fluid shunts, and a method of treating shunt catheters, whereby the interior lumen of a shunt catheter, comprised of a biocompatible matrix, is seeded with cells for placement within cerebrospinal fluid pathways of the central nervous system. The seeded cells have at least one of the following characteristics: (1) they are of a polarized ependymal epithelial phenotype with tight junctional complexes and apical cilia directed toward the lumen of the catheter; (2) they maintain stem/progenitor characteristics and are capable of neurogenesis; (3) they maintain stem/progenitor characteristics and are capable of gliogenesis.