Despite its ubiquity and significance, behavioral habituation is poorly understood in terms of the underlying neural circuit mechanisms. Here, we present evidence that habituation arises from potentiation of inhibitory transmission within a circuit motif commonly repeated in the nervous system. In Drosophila, prior odorant exposure results in a selective reduction of response to this odorant. Both short-term (STH) and long-term (LTH) forms of olfactory habituation require function of the rutabaga-encoded adenylate cyclase in multiglomerular local interneurons (LNs) that mediate GABAergic inhibition in the antennal lobe; LTH additionally requires function of the cAMP response element-binding protein (CREB2) transcription factor in LNs. The odorant selectivity of STH and LTH is mirrored by requirement for NMDA receptors and GABA A receptors in odorant-selective, glomerulus-specific projection neurons (PNs). The need for the vesicular glutamate transporter in LNs indicates that a subset of these GABAergic neurons also releases glutamate. LTH is associated with a reduction of odorant-evoked calcium fluxes in PNs as well as growth of the respective odorant-responsive glomeruli. These cellular changes use similar mechanisms to those required for behavioral habituation. Taken together with the observation that enhancement of GABAergic transmission is sufficient to attenuate olfactory behavior, these data indicate that habituation arises from glomerulus-selective potentiation of inhibitory synapses in the antennal lobe. We suggest that similar circuit mechanisms may operate in other species and sensory systems.abituation is a specific form of implicit learning in which repeated exposure to an unreinforced stimulus results in a decreased behavioral response (1-3). By filtering out such constant sensory input, habituation enhances an animal's ability to focus its cognitive resources on novel or salient features of the environment. Thus, habituation serves as a building block for normal cognition (2, 4). Although it has been studied in many different contexts, causal connections between mechanisms, neuronal changes, and behavioral habituation have not been clearly identified (2). Given our current understanding, it remains unclear whether similar or distinct mechanisms underlie different forms of habituation; also unclear is how these mechanisms compare with those mechanisms used in consolidation or extinction of associative memory (1, 5).The olfactory system provides an experimentally accessible circuit in which to analyze mechanisms that underlie different timescales of behavioral habituation (4, 6, 7). Particularly useful is the adult Drosophila olfactory system, which has organization similar to that of mammals (8, 9). Here, olfactory sensory neurons (OSNs) expressing a single type of functional odorant receptor molecules (ORs) send axons to the antennal lobe and synapse onto (i) glomerulus-specific projection neurons (PNs) that project to the mushroom body and lateral horn, (ii) multiglomerular local interneurons (LNs...