Photoreceptor cadherin (prCAD) is a distinctive cadherin family member that is concentrated at the base of rod and cone outer segments and is required for their structural integrity. During retinal development, prCAD localizes to the site of the future outer segment before rhodopsin or other phototransduction proteins. In vivo, prCAD undergoes a single proteolytic cleavage that releases the ectodomain as a soluble fragment. The C-terminal fragment containing the transmembrane and cytosolic domains remains associated with the outer segment. In rds(؊/؊) retinas, in which outer segment assembly is severely disrupted because of the absence of retinal degeneration slow (RDS)/peripherin, an essential outer segment structural protein, the level of prCAD is increased, whereas the levels of other outer segment proteins are decreased relative to wild type retinas. Additionally, the ratio of intact:cleaved prCAD polypeptides is increased in rds(؊/؊) retinas. These data imply that prCAD ectodomain cleavage is an integral part of the outer segment assembly process, and they further suggest that outer segment assembly might be driven, at least in part, by the near irreversibility of proteolysis.In the vertebrate retina, phototransduction occurs within the outer segments (OSs) 1 of rod and cone photoreceptors. The OS is a modified cilium that projects from the apical face of the photoreceptor cell toward the overlying retinal pigment epithelium (RPE). In mammals, the typical rod OS is ϳ1 m in diameter and ϳ30 -50 m in length. Each rod OS consists of a stack of ϳ1,000 flattened membrane sacs, referred to as discs, surrounded by plasma membrane. The light-absorbing visual pigments reside within the disc and plasma membranes at millimolar concentrations; other less abundant phototransduction proteins reside within one or both of these membranes or within the cytosolic space between adjacent discs.The OS of both rods and cones are subject to constant renewal throughout the life of the organism, with synthesis and assembly of new discs at the base of the OS and with RPEmediated phagocytosis and degradation of the oldest discs at the tip of the OS (1). In mammals, each disc requires ϳ10 days to move along the length of the OS, implying that each photoreceptor assembles ϳ100 new OS discs/day. All of the OS protein and lipid constituents originate in the cell body proper and are funneled through the thin connecting cilium to the site of assembly in the OS. The most widely accepted model for OS disc assembly, based on electron microscopic analyses of primate photoreceptors, posits that nascent discs form by evagination at the base of the OS and that as they enlarge and move distally they become progressively enclosed in plasma membrane (2).The precisely orchestrated synthesis, transport, and assembly of proteins and lipids into an almost crystalline array of OS discs raise numerous questions regarding underlying mechanisms. What controls the regular evagination of plasma membrane to form new discs? What determines the size and shape of...