RGS9-2, a member of the R7 regulators of G protein signaling (RGS) protein family of neuronal RGS, is a critical regulator of G protein signaling. In striatal neurons, RGS9-2 is tightly associated with a novel palmitoylated protein, R7BP (R7 family binding protein). Here we report that R7BP acts to target the localization of RGS9-2 to the plasma membrane. Examination of the subcellular distribution in native striatal neurons revealed that both R7BP and RGS9-2 are almost entirely associated with the neuronal membranes. In addition to the plasma membrane, a large portion of RGS9-2 was found in the neuronal specializations, the postsynaptic densities, where it forms complexes with R7BP and its constitutive partner G5. Using site-directed mutagenesis we found that the molecular determinants that specify the subcellular targeting of RGS9-2⅐G5⅐R7BP complex are contained within the 21 C-terminal amino acids of R7BP. This function of the C terminus was found to require the synergistic contributions of its two distinct elements, a polybasic motif and palmitoylated cysteines, which when combined are sufficient for directing the intracellular localization of the constituent protein. In differentiated neurons, the C-terminal targeting motif of R7BP was found to be essential for mediating its postsynaptic localization. In addition to the plasma membrane targeting elements, we identified two functional nuclear localization sequences that can mediate the import of R7BP into the nucleus upon depalmitoylation. These findings provide a mechanism for the subcellular targeting of RGS9-2 in neurons.G protein signaling pathways mediate a wide range of critical neuronal processes (1). The normal functioning of these pathways is dependent on the tight control of signal duration mediated by regulators of G protein signaling (RGS) 2 proteins (2, 3). RGS proteins act to control the inactivation of heterotrimeric G proteins by dramatically accelerating the rate of their GTP hydrolysis (4, 5). Much recent attention has been focused on the R7 subfamily of RGS proteins due to their emerging roles in the regulation of a variety of critical neuronal functions (6, 7). The R7 subfamily contains four highly homologous proteins, RGS6, RGS7, RGS9, and RGS11, which are expressed exclusively in the nervous system (8) as constitutive complexes with a type 5 G protein  subunit (G5) (9 -11).RGS9, with its two splice isoforms, is one of the best-studied members of the R7 subfamily. The short isoform RGS9-1 is expressed in the photoreceptor neurons where it regulates the visual signal transduction cascade (12, 13). The long splice isoform RGS9-2 is predominantly expressed in the striatum and the central nervous system structures, mediating nociceptive responses where it was shown to regulate dopamine and -opioid pathways (14 -17). Disruption of RGS9-2 in mice resulted in the stimulation of locomotor and reward behavior, increased physical dependence and analgesic effects of morphine, and movement disorders (15)(16)(17). In photoreceptors, the function ...