DNA methylation has profound and varied effects on cellular metabolism. Higher eucaryotes exhibit methylation of specific cytosine molecules during the regulation of gene expression (2, 9). The genomes of lower eucaryotes, such as Drosophila melanogaster (1), Saccharomyces cerevisiae (10,13,20), and various other fungi (6), have a low or undetectable 5-methylcytosine content, suggesting that DNA methylation may not be involved in gene control in these organisms. Procaryotes also use methylation, in restriction-modification systems (19) and in mismatch repair recognition (21). For example, the Escherichia coli dam gene product methylates the N-6 position of adenine residues in 5'-GATC-3' sequences as part of the methyl-directed mismatch repair system (21). Insults by exogenous methylating agents lead to increased mutation and recombination rates and cell death in both eucaryotes and procaryotes (14).Considering the variety of cellular responses to DNA methylation, we have been interested in determining whether and how S. cerevisiae reacts to DNA methylation in vivo by the E. coli dam gene product. The E. coli dam product methylates at a position that is different from that of most exogenous agents, such as methyl methanesulfonate. Previously, we have shown that the yeast cell expresses a cloned dam gene and methylates its chromosomal DNA (15). Methylation causes a general twofold increase in mitotic recombination and a moderate increase in mutation frequencies at some loci. In this report, we demonstrate that S. cerevisiae actively removes N-6-methyladenine from its genome by using the excision repair epistasis group. We infer that the yeast excision repair pathway can respond not only to large DNA damage such as UV-induced cyclobutyl rings (5) or DNA strand cross-links (3) but also to a potentially non-helix-distorting adduct such as N-6-methyladenine. ( Yeast cells have at least three repair groups for coping with damage to normal DNA structure (reviewed in reference 14). These groups are named by a prominent locus in each and include (i) the RAD3 group, the members of which are defined by UV-sensitive mutations and participate in UV excision repair; (ii) the RAD52 group, the members of which are defined by X-ray-sensitive mutations and participate in recombination repair, many loci of which are also involved in mitotic or meiotic recombination or both; and (iii) the RAD6 group, the members of which affect both UV and X-ray sensitivity and participate in error-prone repair. To determine how the yeast cell responds to dam-produced in vivo adenine methylation, we integrated the dam gene into the yeast genome and examined cells containing the dam gene along with mutations in error-prone (rad6-1), recombination (rad52-1), or excision (radl-2 and rad3-2) repair. Yeast spheroplasts were transformed with YIpDAM (Fig. 1), and stable integrants were selected. Tetrad analysis demonstrated that the integrated dam gene was stable and expressed (Fig. 2). Spores from a hemizygous dam strain were dissected, and DNA from the r...