Leishmaniavirus (LRV) is a double-stranded RNA virus that persistently infects the protozoan parasite Leishmania. LRV produces a short RNA transcript, corresponding to the 5' end of positive-sense viral RNA, both in vivo and in in vitro polymerase assays. The short transcript is generated by a single site-specific cleavage event in the 5' untranslated region of the 5. The initial search for viruses in the protozoan parasite Leishmania was undertaken for the potential power these organisms might provide as molecular tools in probing the host-cell biology and as model viral systems (1). Leishmaniaviruses (LRVs) have now been identified in twelve strains of Leishmania braziliensis or Leishmania guyanensis (2) and one strain of Leishmania major (3). Much interest has developed over the role that this virus may play in the virulence and pathogenesis of leishmaniasis. There is a precedent in simple eukaryotes for double-stranded RNA (dsRNA) viruses playing a role in pathogenesis. The dsRNA virus that infects the Chestnut Blight fungus has been shown to confer hypovirulence to this fungus (4). Although the effect that LRV may have on the growth or virulence of Leishmania remains to be elucidated, much has been learned about the virus itself.LRV is a dsRNA virus that persistently infects some strains of the protozoan parasite Leishmania (5). The complete sequences and genome organization for two LRV isolates from the New World protozoan strain L. guyanensis have been reported (6, 7). The virus genome is -5280 nt in length, and two large open reading frames (ORFs) are present in both isolates. When ORF2 was expressed in a recombinant baculovirus expression system, the expressed protein selfassembled into virus-like particles. The protein reacted to antiserum generated against purified virus, demonstrating that ORF2 encoded the 82-kDa capsid protein (8). ORF3 is believed to encode the viral polymerase, as the predicted protein product of ORF3 possesses motifs characteristic of viral RNA-dependent RNA polymerases (9). In an in vitro polymerase assay, both double-and single-stranded RNAs are synthesized by purified virions, indicating that the viral polymerase possesses both replicase and transcriptase activities (10).In addition to genome-length RNA transcripts, a short transcript corresponding to the 5' end of viral positive-sense RNA is generated in polymerase assays of purified virions (11). This short transcript is also detected in infected cells by Northern blot analysis. We have recently shown that the short transcript of LRV1-4 is generated by cleavage within the 5' untranslated region of viral RNA transcripts (12). The endonuclease activity responsible for the cleavage event was proteinaceous in nature and was only associated with intact viral particles. In this report, we identify the viral capsid protein as the responsible endonuclease by demonstrating that recombinant-expressed viral capsid protein possesses the endoribonuclease activity. Furthermore, a region of nucleotides at the cleavage site is requ...