Although the RaplA protein resembles the oncogenic Ras proteins both structurally and biochemically, RaplA exhibits no oncogenic properties. Rather, overexpression of RaplA can reverse Ras-induced transformation of NIH 3T3 cells. Because the greatest divergence in amino acid sequence between Ras and RaplA occurs at the COOH terminus, the role of this domain in the opposing biological activities of these proteins was examined. COOH-terminal processing and membrane association of RaplA were studied by constructing and expressing a chimeric protein (composed of residues 1 to 110 of an H-Ras activated by a Leu-61 mutation attached to residues 111 to 184 of RaplA) in NIH 3T3 cells and a full-length human RaplA protein in a baculovirus-Sf9 insect cell system. Both the chimeric protein and the full-length protein were synthesized as a 23-kDa cytosolic precursor that rapidly bound to membranes and was converted into a 22-kDa form that incorporated label derived from [3H]mevalonate. The mature 22-kDa form also contained a COOH-terminal methyl group. Full-length RaplA, expressed in insect cells, was modified by a C20 (geranylgeranyl) isoprenoid.In contrast, H-Ras, expressed in either Sf9 insect or NIH 3T3 mouse cells contained a C15 (farnesyl) group. This suggests that the RaplA COOH terminus is modified by a prenyl transferase that is distinct from the farnesyl transferase that modifies Ras proteins. Nevertheless, in NIH 3T3 cells the chimeric Ras:RaplA protein retained the transforming activity conferred by the NH2-terminal Ras61L domain. This demonstrates that the modifications and localization signals of the COOH terminus of RaplA can support the interactions between H-Ras and membranes that are required for transformation.The RaplA protein (also known as Krev-1 or smg p21) was isolated on the basis of strong structural (50% amino acid identity) and biochemical similarities to Ras (24,35) and, independently, by its ability to reverse transformation caused by Ras proteins (27). Despite the many similarities between Ras and RaplA proteins, the biochemical basis for this reversion remains unknown. It is possible that the regions of sequence identity between RaplA and Ras allow RaplA, when expressed at high levels (27), to act as a competitor for regulatory or target proteins of Ras. This model has recently received very strong support from studies that show that RaplA can interfere in vitro with the activity of Ras-GTPase-activating protein (GAP) (17, 22), a protein which binds to and stimulates the GTPase activity of Ras, but which fails to affect the ability of RaplA to hydrolyze GTP (17,37). An alternate model suggests that RaplA causes suppression through a mechanism independent of Ras; this would suggest that regions specific to RaplA participate in interactions with proteins of an inhibitory pathway. This possibility is supported by evidence for a GAP-like protein that is unique to RaplA (25). Because the greatest amino acid sequence divergence between Ras and RaplA is in the COOH-terminal domain (25% identity in t...