Angiotensin-converting enzyme (ACE)-2 is the primary enzyme of the vasoprotective axis of the renin angiotensin system that regulates the classic renin angiotensin system axis. We aimed to determine whether local retinal overexpression of adenoassociated virus (AAV)eACE2 prevents or reverses diabetic retinopathy. Green fluorescent protein (GFP)echimeric mice were generated to distinguish resident (retinal) from infiltrating bone marrowederived inflammatory cells and were made diabetic using streptozotocin injections. Retinal digestion using trypsin was performed and acellular capillaries enumerated. Capillary occlusion by GFP ĂŸ cells was used to measure leukostasis. Overexpression of ACE2 prevented (prevention cohort: untreated diabetic, 11.3 AE 1.4; ACE2 diabetic, 6.4 AE 0.9 per mm 2 ) and partially reversed (reversal cohort: untreated diabetic, 15.7 AE 1.9; ACE2 diabetic, 6.5 AE 1.2 per mm 2 ) the diabetes-associated increase of acellular capillaries and the increase of infiltrating inflammatory cells into the retina (F4/80 ĂŸ ) (prevention cohort: untreated diabetic, 24.2 AE 6.7; ACE2 diabetic, 2.5 AE 1.6 per mm 2 ; reversal cohort: untreated diabetic, 56.8 AE 5.2; ACE2 diabetic, 5.6 AE 2.3 per mm 2 ). In both study cohorts, intracapillary bone marrowederived cells, indicative of leukostasis, were only observed in diabetic animals receiving control AAV injections. These results indicate that diabetic retinopathy, and possibly other diabetic microvascular complications, can be prevented and reversed by locally restoring the balance between the classic and vasoprotective renin angiotensin system. (Am J Pathol 2016, 186: 1688e1700; http://dx