A 125-kDa glycoprotein exposed on the surface of Saccharomyces cerevisiae cells belongs to a class of eucaryotic membrane proteins anchored to the lipid bilayer by covalent linkage to an inositol-containing glycophospholipid. We have cloned the gene (GAS)) encoding the 125-kDa protein (Gaslp) and found that the function of Gaslp is not essential for cell viability. The nucleotide sequence of GAS) predicts a 60-kDa polypeptide with a cleavable N-terminal signal sequence, potential sites for N-and 0-linked glycosylation, and a C-terminal hydrophobic domain. Determination of the anchor attachment site revealed that the C-terminal hydrophobic domain of Gaslp is removed during anchor addition. However, this domain is essential for addition of the glycophospholipid anchor, since a truncated form of the protein failed to become attached to the membrane. Anchor addition was also abolished by a point mutation affecting the hydrophobic character of the C-terminal sequence. We conclude that glycophospholipid anchoring of Gaslp depends on the integrity of the C-terminal hydrophobic domain that is removed during anchor attachment.A number of eucaryotic membrane proteins are anchored to the lipid bilayer by a covalently linked glycosyl phosphatidylinositol (GPI) moiety (reviewed in references 20, 26, and 46). This particular mode of membrane attachment occurs in a wide variety of eucaryotic organisms. The modified proteins fall into diverse functional groups, including hydrolytic enzymes, cell adhesion molecules, protozoan coat proteins, and numerous cell surface antigens of unknown function.The complete structure of the GPI moiety has been determined for two forms of the variant surface glycoprotein of Trypanosoma brucei (25, 58) and the mammalian cell surface antigen . GPI anchors from these distantly related organisms share a common core structure, consisting of a phosphatidylinositol molecule linked to a linear tetrasaccharide composed of one nonacetylated glucosaminyl and three mannosyl residues. At its nonreducing end, the glycan is attached via a phosphodiester to ethanolamine, which is amide linked to the a-carboxyl group of the C-terminal amino acid of the mature protein.GPI-anchored proteins are commonly synthesized with a cleavable N-terminal signal sequence and a C-terminal domain composed predominantly of hydrophobic amino acids. This particular feature seems to be important in the mechanism of anchor addition. In all cases studied so far, addition of the GPI anchor involves the removal of 17 to 31 residues from the C terminus of a larger precursor (7,15,22,27,29,32,35,36,47,51,53,60,62,65,68). Since processing rapidly follows protein synthesis (2, 18, 24), it is believed that the GPI moiety is preassembled and transferred en bloc to the protein in the endoplasmic reticulum.Several lines of evidence suggest that a signal for GPI anchor attachment resides in the C-terminal domain of the proteins. However, the C-terminal sequences of GPI-anchored proteins do not exhibit any recognizable homology. Although the stru...