5S rRNA genes of Neurospora crassa are generally dispersed in the genome and are unmethylated. The t-q region of Oak Ridge strains represents an informative exception. Most of the cytosines in this region, which consists of a diverged tandem duplication of a 0.8-kilobase-pair segment including a 5S rRNA gene, appear to be methylated (E. U. Selker and J. N. Stevens, Proc. Natl. Acad. Sci. USA 82:8114-8118, 1985 Eucaryotic genomes contain both tandemly arranged and dispersed repeated sequences. For example, the genome of Neurospora crassa includes approximately 200 tandemly arranged copies of a DNA segment specifying the 17S, 5.8S, and 25S rRNAs and approximately 100 dispersed copies of 5S rRNA genes (6,12,26). Curiously, in most organisms, 5S rRNA genes appear to be tandemly arranged. We have been interested in (i) why some repeated genes of an organism are dispersed while others are tandemly arranged and (ii) whether the arrangement of repeated genes can have important consequences for an organism. To approach these questions, we have studied the 5S rRNA gene family of N. crassa (12,13,18,26). Neurospora 5S rRNA can be fractionated into at least 12 different species (24), and genes corresponding to a number of these 5S rRNAs have been identified (12,26). The various 5S rRNAs of N. crassa are remarkably different. For example, the most abundant RNA, a, differs from the second most abundant species, 3, at 15 positions in the 120-nucleotide RNA. The different 5S rRNA genes do not appear to be differentially regulated (24). Presumably, the dispersed arrangement of the genes allowed for their divergence (26). Nevertheless, the 5S rRNA regions of the majority of the genes are identical, matching the a 5S rRNA. Outside of the 5S rRNA coding region, all of the dispersed 5S rRNA genes are radically different, with the exception of a TATA box located upstream of the transcription start site (13, 21). Tandemly arranged 5S rRNA genes in other organisms are apparently homogeneous, presumably because of homogenization by unequal crossing over (26). Although dispersed * Corresponding author. t Present address: