occurs under tight control of ER-Golgi recycling regulators, which allows defined quantities of complexes to reach postGolgi compartments, where ␥-secretase activity is regulated by multiple other factors. 3D-EM rendering reveals a complex with a translucent inner space, suggesting the presence of a water-filled cavity required for intramembrane proteolysis. Despite huge efforts, we are now only beginning to unravel the assembly, stoichiometry, activation and subcellular location of ␥-secretase. Presenilin at the heart of ␥-secretase Mammalian PSs come in two flavours, PS1 and PS2, which are highly homologous. Both are polytopic membrane proteins and have ten hydrophobic domains, of which nine are proposed to span the membrane (Laudon et al., 2005;Oh and Turner, 2005;Spasic et al., 2006) (Fig. 1). PSs are initially translocated in the ER as fulllength proteins but get converted by endoproteolysis within hydrophobic domain 7 to stable N-and C-terminal fragments (NTFs and CTFs, respectively) that associate to form a heterodimer. Although both fragments are part of the catalytic ␥-secretase, endoproteolysis is not a requirement for activity (Li et al., 2000;Steiner et al., 1999) (reviewed in Dillen and Annaert, 2006).Two highly conserved aspartate residues (Asp257 and Asp385 in human PS1) within transmembrane domain 6 (TMD6) and TMD7 constitute the core of the catalytic site. Mutation of either abolishes ␥-secretase activity Wolfe et al., 1999). Together with surrounding residues, they mark a highly conserved YD/GxGD consensus motif (Steiner et al., 2000). Tyr389 may also contribute to the catalytic site . The conformation of the active site also depends on more remote sequences within PS1, such as the C-terminal PAL motif and Cys residues in TMD1 and TMD8 (Kornilova et al., 2006). Binding of an active-site-directed inhibitor prevents the disulphide cross-linking between TMD1 and TMD8, implicating their close proximity to or allosteric interaction with the catalytic site. Finally, catalytic activity must be sensitive to subtle changes in the overall TMD conformation, given the effects of the scattered FAD-linked mutations.These interactions between remote parts of the molecule fit with the idea that PS1 adopts a ring-like topology (Annaert et al., 2001). This model is based on the identification of APP-binding regions in PS1 -TMD1 (extending to part of the first luminal loop domain) and the C-terminus -and led to the idea that the substrate must first bind to a remote docking site at the heterodimer interface prior to entering the active site. Indeed, subsequent imaging and biochemical studies have demonstrated that transition-state ␥-secretase inhibitors that bind to PS1 do not affect the interaction between PS1 and the APP C-terminal fragment (Berezovska et al., 2003; Esler et al., 2002). Similarly, inhibitors based on the substrate TMD do not prevent labelling of the complex by active-sitedirected inhibitors (Kornilova et al., 2003). Interestingly, these peptide inhibitors label only PS heterodimers and not th...