The mycovirus cryphonectria hypovirus 1 (CHV1) causes proliferation of vesicles in its host, Cryphonectria parasitica, the causal agent of chestnut blight. These vesicles have previously been shown to contain both CHV1 genomic double-stranded RNA (dsRNA) and RNA polymerase activity. To determine the cellular origins of these virus-induced membrane structures, we compared the fractionation of several cellular and viral markers. Results showed that viral dsRNA, helicase, polymerase, and protease p29 copurify with C. parasitica trans-Golgi network (TGN) markers, suggesting that the virus utilizes the fungal TGN for replication. We also show that the CHV1 protease p29 associates with vesicle membranes and is resistant to treatments that would release peripheral membrane proteins. Thus, p29 behaves as an integral membrane protein of the vesicular fraction derived from the fungal TGN. Protease p29 was also found to be fully susceptible to proteolytic digestion in the absence of detergent and, thus, is wholly or predominantly on the cytoplasmic face of the vesicles. Fractionation analysis of p29 deletion variants showed that sequences in the C terminal of p29 mediate membrane association. In particular, the C-terminal portion of the protein (Met-135-Gly-248) is sufficient for membrane association and is enough to direct p29 to the TGN vesicles in the absence of other viral elements.Cryphonectria parasitica is the filamentous ascomycete that causes chestnut blight, a disease that resulted in the nearly complete demise of the American chestnut tree (25). Mycovirus cryphonectria hypovirus 1 (CHV1) infection of C. parasitica reduces virulence of the fungus and has been exploited for the biocontrol of chestnut blight in Europe (24). CHV1 is a member of the virus family Hypoviridae, distinguished by the ability to attenuate virulence and alter developmental processes upon infection of the fungal host. Specific symptoms of virus infection of the fungus grown in culture include reduced pigment production, suppressed asexual sporulation, loss of female fertility, and modified expression of specific host genes (27,29,39,40).CHV1 has a double-stranded RNA (dsRNA) genome and, like other fungal virus dsRNAs, that of CHV1 is not infectious but can be transmitted horizontally by fungal anastomosis (38) and vertically through asexual, but not sexual, spores. Although hypovirus RNA is found in hyphal extracts as dsRNA, the structural characteristics of the dsRNA are reminiscent of a replicative intermediate or replicative form of a singlestranded RNA (ssRNA) virus (53). In CHV1, the 12.7-kb positive, coding strand is polyadenylated and contains two contiguous open reading frames (ORFs A and B) that encode polyproteins that undergo proteolytic processing (6, 7, 54). Domains in both ORF A and ORF B share sequence homology with ssRNA plant potyviruses (30) and the polyadenylated strand is infectious (3), which is consistent with the ssRNA viral replication strategy (11,44). CHV1 infection of C. parasitica causes proliferation of vesicles ...