GAD67, the larger isoform of the ␥-aminobutyric acidsynthesizing enzyme glutamic acid decarboxylase, is a hydrophilic soluble molecule, postulated to localize at nerve terminals and membrane compartments by heterodimerization with the smaller membrane-anchored isoform GAD65. We here show that the dimerization region in GAD65 is distinct from the NH 2 -terminal membrane-anchoring region and that a membrane anchoring GAD65 subunit can indeed target a soluble subunit to membrane compartments by dimerization. However, only a fraction of membrane-bound GAD67 is engaged in a heterodimer with GAD65 in rat brain. Furthermore, in GAD65؊/؊ mouse brain, GAD67, which no longer partitions into the Triton X-114 detergent phase, still anchors to membranes at similar levels as in wild-type mice. Similarly, in primary cultures of neurons derived from GAD65؊/؊ mice, GAD67 is targeted to nerve terminals, where it co-localizes with the synaptic vesicle marker SV2. Thus, axonal targeting and membrane anchoring is an intrinsic property of GAD67 and does not require GAD65. The results suggest that three distinct moieties of glutamate decarboxylase localize to membrane compartments, an amphiphilic GAD65 homodimer, an amphiphilic GAD65/67 heterodimer, tethered to membranes via the GAD65 subunit, and a hydrophilic GAD67 homodimer, which associates with membranes by a distinct mechanism.Glutamic acid decarboxylase (GAD) 1 (EC 4.1.1.15) is the key enzyme in the synthesis of ␥-aminobutyric acid (GABA) (1). GAD is expressed at comparable levels in GABA-ergic neurons in the central nervous system and in the insulin-producing  cells in the islets of Langerhans (2, 3). GABA has been established as the major inhibitory neurotransmitter in the central nervous system, whereas its role in islet cell function remains elusive (4).Mammalian species express two isoforms of GAD designated GAD65 and GAD67 in accordance with their relative molecular masses in kDa (3, 5, 6). GAD65 and GAD67 are highly conserved in evolution. Although the two proteins differ substantially in the first 95 NH 2 -terminal amino acids, they share a significant homology in the remaining part of the molecule, which contains the catalytic portion of the enzyme (ϳ78% identity, ϳ95% similarity). GAD65 and GAD67 show significant differences in their levels of expression in different brain regions and steady state saturation with the co-enzyme pyridoxal 5Ј-phosphate (PLP) (1). More than half of GAD in rat brain is present as the PLP-free apoenzyme (7, 8), and GAD65 constitutes the majority of this reservoir (9 -11). GAD67 constitutes a small fraction of the apo-GAD reservoir in the brain (11) and is predominantly found as a holoenzyme tightly associated with PLP (9 -11). GAD65, but not GAD67, is a major target of autoimmune responses directed against pancreatic  cells in type 1 diabetes (12, 13) and toward GABA-ergic neurons in a rare disease of the central nervous system, stiff-man syndrome (14).Most biochemical studies on the quaternary structure of purified GAD are consistent wit...