Agrin isoforms with different bioactivities are synthesized by the nerve and the muscle. Neural agrin containing an 8-amino acid insert (z8) introduced by alternative splicing is the active form that induces synaptic differentiation at the neuromuscular junction. In addition to alternative splicing, extracellular calcium is also required for the activity of neural agrin. To understand better how the activity of agrin is regulated by alternative splicing, we have applied alanine substitution mutagenesis to the z8 insert and the calcium binding site in the minimally functional AgG3z8 fragment. Single alanine substitutions in the 4th through the 7th amino acid of the z8 splice insert significantly reduced the function of agrin, in terms of acetylcholine receptor clustering activity and the affinity for binding to the muscle surface. Mutation of the asparagine at the 4th position drastically reduces bioactivity such that it is equivalent to that of muscle form AgG3z0. These reduced activity mutants also show reduced magnitudes of the calcium-induced CD spectrum change from that observed in AgG3z8 fragments, indicating that cross-talk between calcium and the z8 insert is critical for the normal activity of agrin. However, removal of Ca 2Ű binding via mutation of both aspartic acids in the calcium binding site did not totally eliminate the activity of AgG3z8. These results suggest a model wherein the z8 insert is a Ca 2Ű -responsive allosteric element that is essential in forming an active conformation in neuronal agrin.Agrin is a heparan sulfate proteoglycan first isolated from the electric organ of the marine ray Torpedo californica (1). Studies in the recent decades have established that agrin plays a critical role in directing the formation and stabilization of the mammalian neuromuscular junction. Agrin is secreted by the axonal terminals of motor neurons of the spinal cord and is highly concentrated in basal lamina of the synaptic cleft (2). Incubation of agrin with cultured myotubes or ectopic expression of agrin in adult skeletal muscles induces virtually all major aspects of postsynaptic specialization in the endplates, which include clustering of the nicotinic acetylcholine receptors (AChRs) 2 and recruitment of other major postsynaptically expressed proteins such as acetylcholine esterase, utrophin, and rapsyn (3-5). Mutant mice deficient in agrin are born with severe defects of the neuromuscular synapse and die shortly after birth due to respiratory failure (6). In response to agrin released from the motor neurons, muscle produces retrograde signals to immobilize growth cones and to induce accumulation of synaptic vesicles and voltage-gated calcium channels in the presynaptic nerve terminals (6 -9).Recent study indicates that the downstream signaling in the neuromuscular junction is mediated by a receptor complex in myotubes containing the muscle-specific receptor tyrosine kinase, MuSK, and LRP4, a member of the LDL receptor family. LRP4 knock-out mice exhibit severe neuromuscular defects similar to those ...