Arginine metabolism has been studied intensively in manly organisms, beginning in earnest with the discovery of the urea cycle in mammals (139). The genetic control of the arginine pathway was the earliest example of the one-gene, one-enzyme relationship in the biochemical genetics of Neiurosporca crassa (206). The elucidation of the pathway in Escherichia coli followed soon thereafter, the term "repression'' having been coined to describe the regulatory behavior of acetylornithinase (229). The discovery of carbamoyl phosphate in 1955 (131) led to many comparative studies of its metabolism (52, 130, 152). A profound knowledge of arginine metabolism in N. crassa and Sacclhiaonvces (ceev'isiae has developed in the last 25 years. The subject justifies a comparative review, because the two organisms solve similar metabolic problems in different ways. It is likely that the fundamental phenomena of compartmentation and regulation in the two organisms can be seen throughout the evolutionary tree, used variously according to the demands of particular lifestyles. The synthesis of arginine in fungi has three main components: the synthesis of ornithine, the synthesis of carbamoyl phosphate, and the conversion of these two compounds to arginine. The catabolic pathway consists of the hydrolysis of arginine to ornithine and urea, the breakdown of urea to ammonia and carbon dioxide, and the conversion of ornithine to glutamate. A theme to be pursued is how the anabolic and catabolic pathways can each proceed to the exclusion of the other, given ornithine as a common intermediate. A related theme is how carbamoyl phosphate and ornithine are confined to the arginine pathway in the face of enzymes that might divert them to other fates. Both of these matters involve the compartmentation of small molecules by intracellular membranes, which in S. (ereiisiae is supplemented by elaborate enzyme regulatory mechanisms. This review describes the enzymology, genetics, and localization of the arginine enzymes of S. cere\eisiae and N. crassa. This is followed by descriptions of vacuolar function, enzyme regulation, and the integration of relevant factors in adaptation to different environments. Metabolic maps (Fig. 1 and 2) and a gene-enzyme directory (Table 1) are given for N. crassa(and S. cerevisiae. Arginine metabolism in these organisms has been reviewed in more limited ways previously (1