Cysteine-containing amino acid sequences (CAAX, CC, and CXC; C is cysteine, A is any aliphatic amino acid, and X is any amino acid) are targets for the attachment of C15 (farnesyl) and C20 (geranylgeranyl) isoprenoids to peptides and proteins by specific prenyltransferases. Although much work has centered on the enzymatic mechanisms of these enzymes, the biological consequences of the differential isoprenylation they catalyze remain to be elucidated. Farnesylation of the a-factor mating pheromone of Saccharomyces cerevisiae is a known prerequisite for its biological activity and its secretion through a pathway utilizing the yeast STE6 protein, a homolog of the mammalian multidrug resistance (MDR) P-glycoprotein. We generated specific mutations in the a-factor gene to encode isoprenylation targets for geranylgeranylation [Cys-Val- Mating in the yeast Saccharomyces cerevisiae is mediated by the reciprocal interaction of secreted peptide pheromones with cell-surface receptors and has served as a model for the study of various cellular processes (1). Despite their apparent functional equivalence, the yeast mating pheromones, a-and a-factor, are structurally dissimilar. The a-factor, an unmodified tridecapeptide, is secreted by a-cells and undergoes maturation and secretion via the yeast secretory pathway (1, 2). In contrast, a-factor is a dodecapeptide [Tyr-Ile-Ile-LysVal-Phe-Trp-Asp-Pro-Ala-Cys(S-farnesyl)-OCH3] that is posttranslationally modified by farnesylation and methyl esterification of the C terminus. These modifications are shared by other proteins including the RAS oncogene product, nuclear lamins, and rab vesicular trafficking proteins (3-8). Furthermore, the a-factor is exported from a-cells by a secretory mechanism requiring the action of the yeast STE6protein, a homolog of the mammalian multidrug resistance (MDR) P-glycoprotein (9,10).The prenylation of oncogenic RAS has been identified as essential for its membrane localization and role in cellular transformation (11). Recent evidence suggests farnesylation enhances the ability of yeast RAS2 to directly interact with, and activate, solubilized adenylyl cyclase in vitro (12). Similarly, farnesylation of a-factor is required for both its secretion and bioactivity (4-6). In this regard, the substrate specificity exhibited by a-factor in its recognition by the STE6 transporter protein and its receptor on a-cells, the STE3 protein (13), provides a model for analysis of lipopeptide structure-function relationships.Two distinct isoprenoids have been implicated in the posttranslational modification of proteins, the C15 farnesyl group and the C20 geranylgeranyl isoprenoid. Through extensive in vitro prenylation studies, specific C-terminal cysteine-containing motifs have been identified as the targets for attachment of these lipids by one of at least three classes of prenyltransferases (3,7). Farnesyl prenyltransferase (FPT) and geranylgeranyl prenyltransferase I (GGPT-I) catalyze the addition of either a C15 or a C20 lipid, respectively, to termina...