There is evidence that alterations in the normal physiological activity of PrP C contribute to prion-induced neurotoxicity. This mechanism has been difficult to investigate, however, because the normal function of PrP C has remained obscure, and there are no assays available to measure it. We recently reported that cells expressing PrP deleted for residues 105-125 exhibit spontaneous ionic currents and hypersensitivity to certain classes of cationic drugs. Here, we utilize cell culture assays based on these two phenomena to test how changes in PrP sequence and/or cellular localization affect the functional activity of the protein.We report that the toxic activity of ⌬105-125 PrP requires localization to the plasma membrane and depends on the presence of a polybasic amino acid segment at the N terminus of PrP. Several different deletions spanning the central region as well as three disease-associated point mutations also confer toxic activity on PrP. The sequence domains identified in our study are also critical for PrP Sc formation, suggesting that common structural features may govern both the functional activity of PrP C and its conversion to PrP Sc .Prion diseases or transmissible spongiform encephalopathies comprise a group of fatal neurodegenerative disorders in humans and animals that can be sporadic, infectious, or genetic in origin (1, 2). The prion protein (PrP C ) is a membrane-anchored glycoprotein with no widely agreed-upon physiological function, although its ability to convert into a self-propagating isoform (PrP Sc ) is associated with development of prion diseases. PrP C , thus, plays a crucial role in prion pathogenesis as a substrate for generation of PrP Sc , a conclusion that has been demonstrated by the resistance of PrP-null mice to prion infection (3). In addition, however, there is evidence that PrP C is required for delivery of a toxic signal during prion propagation. This is demonstrated by the fact that brain tissue from PrP-null mice grafted into wild-type animals remains healthy despite the presence of copious amounts of PrP Sc from the surrounding host brain (4). Moreover, conditional genetic ablation of neuronal PrP C allows pathological and clinical recovery of prioninfected mice (5). Therefore, prion neurotoxicity is likely due to subversion of normal PrP C function rather than loss of PrP C or gain of PrP Sc activity (6). However, progress in investigating this mechanism has been hampered by a lack of understanding of the physiological role of PrP C and the absence of assays to measure the functional activity of the protein. To address this issue, our laboratory has recently developed two assays that measure toxicity of PrP mutants expressed in cultured cells. The first assay is a drugbased cellular assay (DBCA) 3 that measures cell death resulting from increased accumulation of two classes of drugs that are normally used to select transfected cell lines (aminoglycosides and bleomycin analogues) (7, 8). The second assay utilizes whole-cell patch clamping to measure the la...