Ty3 is a 5.4-kb, retroviruslike element of the yeast Saccharomyces cerevisiae (49). The two open reading frames of Ty3, GAG3 and POL3, are analogous to the retroviral gag and pol genes. They encode the structural proteins capsid (CA) and nucleocapsid (NC) and the enzymes protease (PR), reverse transcriptase (RT), and integrase (IN), respectively (29)(30)(31)35). These proteins, associated with genomic RNA, assemble into viruslike particles (VLPs), and polyprotein maturation and reverse transcription ensue. Ty3 differs, however, from retroviruses in that it inserts specifically into the transcription initiation site of genes transcribed by RNA polymerase III (8). In addition, Ty3 IN has extended, weakly conserved domains amino and carboxyl terminal to the central, conserved domain that contains the zinc-binding motif and catalytic D-D-(35)E triad. These terminal domains were previously examined by molecular genetics in order to understand their role(s) in functions unique to Ty3. Deletion (37) and alanine-scanning mutagenesis (47) revealed pleiotropic effects of mutations in the nonconserved IN domains on Ty3 replication, including effects on RT and IN protein processing and stability, DNA content of the VLP, 3Ј end processing, and nuclear entry. Mutations that eliminate large portions of the human immunodeficiency virus type 1 (HIV-1) IN-coding sequence and point mutations in the zinc finger and catalytic core region (F185Y) result in lower amounts of DNA circles in infected cells (17,18,45). More recently, these mutations and a small carboxyl-terminal deletion of IN were shown to specifically reduce the amount of early reverse transcription intermediates that could be used as templates in a PCR to amplify the R-U5 region (58). In another study, nine conserved S, T, Y, K, and R residues of IN were mutated to test for contributions to reverse transcription. R186, which maps near the nuclear localization sequence of HIV-1 IN (4), was required for wild-type amounts of an early replication intermediate as measured by PCR (53). Consistent with these effects of IN structure on RT function, HIV-1 IN and RT have been shown to interact (58). Recently, similar findings have been reported for the effects of mutations in Moloney murine leukemia virus IN on cDNA production (40), suggesting that the contribution of IN to reverse transcription may be a more general phenomenon. Nevertheless, the exact contribution of IN to reverse transcription is not yet understood at the molecular level.Models to explain the contribution of Ty3 IN to extrachromosomal Ty3 DNA would be compatible with effects at several different points. These include roles in initiation complex assembly, minus-strand or plus-strand transfers, elongation, and stabilization of the extrachromosomal DNA. In replication, the IN domain could function in cis to the RT domain, for example as part of an RT-IN fusion, or in trans, for example by folding RT. Precedents for these models can be found among the retroviruses. In the case of avian leukosis-sarcoma, in the ␣-...