The coupling of receptors to heterotrimeric G proteins is determined by interactions between the receptor and the G protein ␣ subunits and by the composition of the ␥ dimers. To determine the role of the ␥ subunit prenyl modification in this interaction, the CaaX motifs in the ␥ 1 and ␥ 2 subunits were altered to direct modification with different prenyl groups, recombinant ␥ dimers expressed in the baculovirus/Sf9 insect cell system, and the dimers purified. The activity of the ␥ dimers was compared in two assays: formation of the high affinity agonist binding conformation of the A1 adenosine receptor and receptor-catalyzed exchange of GDP for GTP on the ␣ subunit. The  1 ␥ 1 dimer (modified with farnesyl) was significantly less effective than  1 ␥ 2 (modified with geranylgeranyl) in either assay. The  1 ␥ 1 -S74L dimer (modified with geranylgeranyl) was nearly as effective as  1 ␥ 2 in either assay. The  1 ␥ 2 -L71S dimer (modified with farnesyl) was significantly less active than  1 ␥ 2 . Using 125 I-labeled ␥ subunits, it was determined that native and altered ␥ dimers reconstituted equally well into Sf9 membranes containing A1 adenosine receptors. These data suggest that the prenyl group on the ␥ subunit is an important determinant of the interaction between receptors and G protein ␥ subunits.The membranes of all cells contain multiple receptors and transmembrane signaling systems that regulate cell function (1-5). One major unsolved problem in cell signaling is understanding how a cell selects its response to a hormone or growth factor given the possibilities available. The signaling mechanism used by receptors coupled to the heterotrimeric G proteins 1 provides an excellent example of the complexities. Current evidence suggests that specificity is determined at many levels in this pathway. In addition to the selectivity provided by the receptor itself, the interaction between the intracellular loops of the receptors and the ␣␥ subunits in the heterotrimer is a major determinant of specificity (6, 7). Interestingly, some receptors couple selectively to certain G protein ␣ subunits. For example, the -adrenergic receptor couples primarily to members of the G s ␣ family (1, 6) and rhodopsin to the G t ␣ subunit (2). Other receptors, such as the angiotensin AT 1 or muscarinic receptors couple to multiple ␣ subunits including members of the G q and G i class of ␣ subunits (6, 8), leading to activation of multiple signaling networks by a given ligand (5).Although the receptor and the ␣ subunit provide one determinant of selectivity, the ␥ subunit is clearly required for the receptor to couple to the ␣ subunit (9, 10). Thus, a third level of selectivity may be provided by the type of ␥ subunit used to form the receptor-␣␥ complex. In addition, since the ␥ dimer can activate effectors directly (11-13), the diversity of these proteins may contribute to the specificity of signaling. Two lines of experimental evidence support this conclusion. Using recombinant ␥ subunits purified from Sf9 insect cel...