Nitric oxide is synthesized in diverse mammalian tissues by a family of calmodulin-dependent nitric oxide synthases. The endothelial isoform of nitric oxide synthase (eNOS) is targeted to the specialized signal-transducing membrane domains termed plasmalemmal caveolae. Caveolin, the principal structural protein in caveolae, interacts with eNOS and leads to enzyme inhibition in a reversible process modulated by Ca 2Ű -calmodulin (Michel, J. B., Feron, O., Sacks, D., and Michel, T. (1997) J. Biol. Chem. 272, 15583-15586). Caveolin also interacts with other structurally distinct signaling proteins via a specific region identified within the caveolin sequence (amino acids 82-101) that appears to subserve the role of a "scaffolding domain." We now report that the co-immunoprecipitation of eNOS with caveolin is completely and specifically blocked by an oligopeptide corresponding to the caveolin scaffolding domain. Peptides corresponding to this domain markedly inhibit nitric oxide synthase activity in endothelial membranes and interact directly with the enzyme to inhibit activity of purified recombinant eNOS expressed in Escherichia coli. The inhibition of purified eNOS by the caveolin scaffolding domain peptide is competitive and completely reversed by Ca 2Ű -calmodulin. These studies establish that caveolin, via its scaffolding domain, directly forms an inhibitory complex with eNOS and suggest that caveolin inhibits eNOS by abrogating the enzyme's activation by calmodulin.The mammalian nitric oxide (NO) 1 synthases comprise a family of three related proteins and modulate diverse biological processes ranging from neurotransmission to vascular homeostasis to immunological surveillance (1, 2). These homodimeric proteins share similar overall catalytic schemes to produce NO by the NADPH-, heme-, and O 2 -dependent oxidation of L-arginine in a complex reaction involving numerous redox cofactors, and are absolutely dependent on the ability of the enzymes to be allosterically activated by Ca 2Ï© -calmodulin. The roles of calmodulin in NOS catalysis have been extensively studied, and the binding of calmodulin appears to facilitate interdomain electron transfer for all three enzyme isoforms. However, the NOS isoforms differ in important aspects of their Ca 2Ï© -dependence for enzyme activation by calmodulin. For the endothelial and neuronal nitric oxide synthase isoforms (termed eNOS and nNOS, respectively), transient changes in intracellular Ca 2Ï© promote calmodulin binding and enzyme activation; eNOS and nNOS are characteristically activated as a short-term response to receptor-dependent calcium transients. By contrast, the inflammation-related NOS (iNOS) binds calmodulin avidly and appears to be fully active even at low ambient intracellular calcium levels in immunostimulated cells.The different NOS isoforms may also be distinguished by their subcellular distribution. eNOS is unique among the NOS isoforms in being targeted to the signal-transducing membrane microdomains termed plasmalemmal caveolae (3). Plasmalemmal caveola...