J.TCW, K.J.B., and A.M.G. designed the experiments and wrote the manuscript. J.TCW developed the astrocyte differentiation protocol. J.TCW, K.R.B., B.J.H., and R.A. (with H.P.) differentiated the hiPSC-astrocyte lines. M.W. and B.Z. conducted the RNA-seq analysis. J.TCW performed the neuroinflammatory assays. A.A.P., J.TCW, and S.I.M. performed the phagocytosis assays. J.TCW, A.A.P., and B.J.H. executed flow-cytometry analysis on astrocytes and NPCs. J.TCW and K.R.B. performed real-time qPCR and immunofluorescence staining. E.L. and P.A.S. conducted and analyzed the calcium imaging analysis. C.M.K. shared prepublication information about astrocyte differentiation conditions.