The type I killer strains of Saccharomyces cerevisiae secrete a dimeric 19-kDa protein that kills sensitive cells by disrupting cytoplasmic membrane function. This toxin is encoded by the double-stranded RNA plasmid Ml-dsRNA, which also determines specific immunity to toxin. A preprotoxin, the 35-kDa in vitro translation product of denatured Ml-dsRNA, is presumed to be the primary in vivo gene product.To facilitate studies on preprotoxin structure and maturation, we have inserted a partial cDNA copy of Ml-dsRNA into the yeast vector plAl, bringing it under control of the phosphaterepressible PHOS promoter. This in-frame gene fusion encodes all of the preprotoxin sequence except for its N-terminal secretion leader, which is replaced by the leader sequence of PHOS. Transformation of sensitive yeast strains lacking Ml dsRNA with such fusion plasmids converts them to phosphaterepressible, immune killers, demonstrating that both toxin and immunity determinants are contained within the preprotoxin molecule. L-1-Tosylamido-2-phenylethyl chloromethyl ketone retards glycosylation of preprotoxin to toxin, facilitating size comparisons and indicating that processing of the normal precursor involves three glycosylation events but does not involve cotranslational leader peptidase action. In contrast, the PHOS leader is apparently removed from the fusion preprotoxin.The determinant oftoxin production and of specific immunity to this toxin in the type I killer system of Saccharomyces cerevisiae (1, 2) is the 1.9-kilobase-pair (kb) double-stranded RNA plasmid Ml-dsRNA, which is encapsidated in cytoplasmic virus-like particles, ScV-Ml. The secreted toxin is encoded by and is composed oftwo dissimilar, 9.5-and 9.0-kDa, disulfide-linked, nonglycosylated protein subunits, denoted a and A, respectively (4). An intracellular 43-kDa glycosylated precursor, or protoxin, is precipitated from extracts ofpulse-labeled killer cells by anti-toxin IgG (5, 6) and is processed, with a half-life of about 25 min, into the 19-kDa exocellular toxin (7). In vitro translation of denatured Ml-dsRNA produces Ml-P1, a 35-kDa product (3, 4).