Prenylcysteine carboxyl methyltransferase (pcCMT) is the third of three enzymes that posttranslationally modify C-terminal CAAX motifs and thereby target CAAX proteins to the plasma membrane. Here we report the molecular characterization and subcellular localization of the first mammalian (human myeloid) pcCMT. The deduced amino acid sequence of mammalian pc-CMT predicts a multiple membrane-spanning protein with homologies to the yeast pcCMT, STE14, and the mammalian band 3 anion transporter. The human gene complemented a ste14 mutant. pcCMT mRNAs were ubiquitously expressed in human tissues. An anti-pc-CMT antiserum detected a 33-kDa protein in myeloid cell membranes. Ectopically expressed recombinant pc-CMT had enzymatic activity identical to that observed in neutrophil membranes. Mammalian pcCMT was not expressed at the plasma membrane but rather restricted to the endoplasmic reticulum. Thus, the final enzyme in the sequence that modifies CAAX motifs is located in membranes topologically removed from the CAAX protein target membrane.A number of signaling molecules, including Ras and G proteins, are targeted to the inner leaflet of the plasma membrane by a sequence of posttranslational modifications of a C-terminal CAAX 1 motif that include prenylation, proteolysis, and carboxyl methylation (1). In some cases palmitoylation of an upstream cysteine is also required (2). These modifications render otherwise hydrophilic proteins hydrophobic, promoting association with membranes. The relative contributions of prenylation, proteolysis, and carboxyl methylation to membrane targeting are not well understood. Whereas neutralization of the negative charge on the ␣-carboxyl group by methyl esterification adds to overall hydrophobicity, particularly for farnesylated proteins, this modification contributes little to the affinity of geranylgeranylated proteins for membranes (3). Although processed CAAX proteins can associate with phospholipid vesicles in vitro (4), it is not known whether membrane proteins participate in prenylcysteine membrane association in vivo. The Saccharomyces cerevisiae mating pheromone, a-factor, is a CAAX-processed polypeptide, and both its secretion via the Ste6p transporter (5) and its engagement of the Ste3p G protein-linked receptor (6) are dependent on prenylcysteine carboxyl methylation, suggesting a role for this modification in protein-protein interactions. A cycle of prenylcysteine carboxyl methylation is associated with neutrophil activation (7), and inhibitors of this enzyme block signal transduction in neutrophils (7), macrophages (8), and platelets (9), suggesting that, like bacterial chemotaxis (10), some eukaryotic processes may be regulated by reversible carboxyl methylation.Because prenylcysteine carboxyl methylation cannot be abolished by mutation of the substrate without also eliminating prenylation, elucidation of the role of carboxyl methylation will require characterization and disruption of the methyltransferase. Until recently, the only prenylcysteine carboxyl methyltransfe...