Progesterone has long been considered the primary mediator of Xenopus oocyte maturation. We have recently shown, however, that androgens, which are equal or more potent promoters of maturation and are present at higher levels in ovulating frogs, may also be playing an important physiologic role in mediating maturation. Here, we examined the role of CYP17, a key enzyme mediating sex steroid synthesis, in Xenopus ovarian androgen production. We found that the 17,20-lyase activities of Xenopus CYP17 exceeded the 17␣-hydroxylase activities in both the ⌬4 and ⌬5 pathways; thus, Xenopus CYP17 rapidly converted pregnenolone and progesterone to dehydroepiandrosterone (DHEA) and androstenedione, respectively. This remarkably robust activity exceeds that of CYP17 from most higher vertebrates, and likely explains why virtually no progesterone is detected in ovulating frogs. Additionally, ovarian CYP17 activity was present exclusively in oocytes, although all other enzymes involved in sex steroid production were expressed almost entirely in surrounding follicular cells. This compartmentalization suggests a "two-cell" model whereby Xenopus ovarian androgen production requires both follicular cells and oocytes themselves. The requirement of oocytes for ovarian androgen production further introduces the unusual paradigm whereby germ cells may be responsible for producing important steroids used to mediate their own maturation.The phenomenon of steroid-induced maturation of Xenopus oocytes has served as a model for studying cell cycle and nongenomic steroid signaling for several decades (1-5). During this time, progesterone has been considered the primary physiologic mediator of oocyte maturation, perhaps through interactions with classical progesterone receptors expressed in the oocyte (6, 7). We have recently shown, however, that testosterone, rather than progesterone, may be the primary physiologic mediator of Xenopus oocyte maturation (8). This dominant role of testosterone is evidenced by the observation that testosterone is a substantially more potent activator of oocyte maturation than progesterone, and that testosterone levels are significantly higher than progesterone (which is nearly undetectable) in the serum and ovaries of -HCG 1 -stimulated frogs. In addition, we have shown that, in vitro, isolated oocytes rapidly convert exogenously added progesterone to the androgen androstenedione (AD), which is an equally potent promoter of maturation when compared with progesterone. These data suggest that both AD and progesterone are likely inducing maturation under in vitro conditions typical for "progesteronemediated" maturation.The high levels of ovarian testosterone in the absence of detectable progesterone imply that Xenopus ovaries are extremely efficient at metabolizing progesterone. Additionally, the ability of isolated oocytes to rapidly convert progesterone to androgens suggests that the oocytes themselves may be important contributors to progesterone metabolism in the ovary. To explain the lack of in vivo progeste...