We proposed a scan-RNA model for genome rearrangement based on finding small RNAs that hybridized preferentially to micronuclear-specific sequences and on the properties of Twi1p, a PPD protein required for both sequence elimination and small RNA accumulation in Tetrahymena. Here we show that Twi1p interacts with the small RNAs in both the old and the developing macronucleus, and is required for their stability. We show that the specificity of the small RNAs for micronuclearlimited sequences increases during conjugation. These results indicate that the small RNAs observed in conjugating cells have the properties predicted for scan RNAs. Like most ciliated protozoans, Tetrahymena thermophila (referred to as Tetrahymena below) have two structurally and functionally different nuclei in a single cell (see Karrer 2000). The diploid, germ-line micronucleus and the polyploid, somatic macronucleus are derived from the same zygotic nucleus formed by fertilization of two micronucleus-derived, haploid, meiotic nuclei during the sexual process of conjugation. Concomitant with formation of a new macronucleus during conjugation, the old macronucleus is destroyed. Most, if not all, transcription required for vegetative cell growth occurs in the macronucleus.Tetrahymena undergoes extensive programmed genome rearrangement during conjugation (see Yao et al. 2002) resulting in elimination of ∼15% of the genome. About 6000 internal eliminated sequences (IESs), varying from 0.5 to >20 kb in length, are eliminated, and flanking, macronucleus-destined sequences are ligated during macronuclear development in Tetrahymena. The precise ends of IESs can occur reproducibly at a specific site or at a limited number of alternative sites. Because no obvious consensus sequence had been found in and around IESs, it was not clear how IESs were precisely recognized until recently. We and others showed that an RNAi-related mechanism was involved in the IES elimination in Tetrahymena (Mochizuki et al. 2002;Yao et al. 2003). A PPD (PAZ-Piwi Domain) protein, Twi1p, was required for IES elimination, and for accumulation of the siRNAlike small RNAs homologous to micronuclear-specific (largely IES) sequences. Twi1p was detected only during conjugation and accumulated first in the cytoplasm, then in parental (old) macronuclei and then relocalized to developing (new) macronuclei.Based on the results above, on the presence of micronuclear transcripts from both strands of the IESs in conjugating cells (Chalker and Yao 2001), and on the demonstration that sequences in the old macronucleus could epigenetically affect IES elimination (Chalker and Yao 1996), we proposed a model to explain how IESs, lacking any consensus sequences, are recognized during macronuclear development (Mochizuki et al. 2002;Mochizuki and Gorovsky 2004). First, the micronuclear genome is transcribed bidirectionally to make double-stranded (ds) RNAs that are processed to small RNAs by a Dicer-related RNase. We named these hypothetical small RNAs scan (scn) RNAs. We proposed that the scnRN...