Recombinant adeno-associated virus type 2 (AAV2) can be produced in adenovirus-infected cells by cotransfecting a plasmid containing the recombinant AAV2 genome, which is generally comprised of the viral terminal repeats flanking a transgene, together with a second plasmid expressing the AAV2 rep and cap genes. However, recombinant viruses generally replicate inefficiently, often producing 100-fold fewer virus particles per cell than can be obtained after transfection with a plasmid containing a wild-type AAV2 genome. We demonstrate that this defect is due, at least in part, to the presence of a positive-acting cis element between nucleotides 194 and 1882 of AAV2. Recombinant AAV2 genomes lacking this region accumulated 14-fold less double-stranded, monomer-length replicative-form DNA than did wild-type AAV2. In addition, we demonstrate that a minimum genome size of 3.5 kb is required for efficient production of single-stranded viral DNA. Relatively small recombinant genomes (2,992 and 3,445 bp) accumulated three-to eightfold less single-stranded DNA per monomer-length replicative-form DNA molecule than wild-type AAV2. In contrast, recombinant AAV2 with larger genomes (3,555 to 4,712 bp) accumulated similar amounts of single-stranded DNA per monomer-length replicative-form DNA compared to wild-type AAV2. Analysis of two recombinant AAV2 genomes less than 3.5 kb in size indicated that they were deficient in the production of the extended form of monomer-length replicative-form DNA, which is thought to be the immediate precursor to single-stranded AAV2 DNA.Adeno-associated virus type 2 (AAV2) is a human parvovirus of the dependovirus subgroup. Unlike other parvoviruses, dependoviruses generally require coinfection with a helper virus, such as adenovirus or herpesvirus, to initiate a lytic infection (4). In the absence of a helper virus, AAV2 integrates into the host chromosome and remains latent until it is activated by an adenovirus or herpesvirus infection or other stress, such as DNA damage (46,66,67). After adenovirus or herpesvirus infection, AAV2 excises from the chromosome and replicates its genome as linear, double-stranded DNA molecules called replicative forms (51). Repeated sequences at the ends of AAV2 DNA serve as origins of replication and packaging elements. Like other parvoviruses, AAV2 packages one genome-length, single-stranded DNA.AAV2 contains only two major open reading frames, rep and cap, named for their roles in DNA replication and encapsidation (19,48,56). Rep78 and Rep68 are generated from transcripts that derive from the P5 promoter, and they differ in their C termini due to alternative splicing of the P5 transcripts (7, 58). Rep78 and Rep68 are DNA helicases that also have a single-stranded DNA endonuclease activity (5, 23, 65, 69), and either protein is sufficient to support AAV2 DNA replication (21). Rep78 and Rep68 are also required for site-specific integration of AAV DNA into the host cell genome and for excision (2, 49, 52). Rep52 and Rep40 are translated from transcripts generate...