R7BP (RGS7 family-binding protein) has been proposed to function in neurons as a palmitoylation-regulated protein that shuttles heterodimeric, G i/o ␣-specific GTPase-activating protein (GAP) complexes composed of G5 and RGS7 (R7) isoforms between the plasma membrane and nucleus. To test this hypothesis we studied R7BP palmitoylation and localization in neuronal cells. We report that R7BP undergoes dynamic, signalregulated palmitate turnover; the palmitoyltransferase DHHC2 mediates de novo and turnover palmitoylation of R7BP; DHHC2 silencing redistributes R7BP from the plasma membrane to the nucleus; and G i/o signaling inhibits R7BP depalmitoylation whereas G i/o inactivation induces nuclear accumulation of R7BP. In concert with previous evidence, our findings suggest that agonist-induced changes in palmitoylation state facilitate GAP action by (i) promoting Gi␣ depalmitoylation to create optimal GAP substrates, and (ii) inhibiting R7BP depalmitoylation to stabilize membrane association of R7-G5 GAP complexes. Regulated palmitate turnover may also enable R7BP-bound GAPs to shuttle between sites of low and high G i/o activity or the plasma membrane and nucleus, potentially providing spatio-temporal control of signaling by G i/o -coupled receptors.Sensory stimuli, including light and olfactants, and many modulatory neurotransmitters, psychotherapeutic agents and drugs of abuse elicit their biological effects by activating receptors coupled to pertussis toxin (PTX) 2 -sensitive G proteins of the G i/o class (1, 2). Signaling by G i/o -coupled receptors is regulated by the R7 family (RGS6, RGS7, RGS9, and RGS11) of RGS (regulator of G protein signaling) proteins (3, 4). R7 proteins form obligatory heterodimers with G5 (5-7), the most diverged member of the G family, producing complexes that regulate signaling kinetics by functioning as GTPase-activating proteins (GAPs) selective for G i/o ␣ subunits (6, 8). Indeed, RGS9 regulates phototransduction kinetics in photoreceptor cells (9, 10), and opioid and cocaine action in striatum (11, 12). RGS7 and 11 regulate photoresponse kinetics in retinal ON bipolar cells (13-15). RGS6 regulates muscarinic receptorevoked IKACh gating kinetics in cardiomyocytes (16).R7-G5 heterodimers associate with R9AP (RGS9 anchor protein) or R7BP (RGS7 family-binding protein), a pair of related SNARE-like proteins (17). R9AP is a transmembrane protein that binds RGS9 or RGS11 and is expressed in retinal photoreceptors and ON bipolar cells (18,19). R9AP is required for stable expression of RGS9 in photoreceptor disk membranes (20), and RGS11 in ON bipolar cell dendrites (21). Thus, R9AP is essential for normal photoresponse kinetics in both cell types (10,20,21). In contrast, R7BP is expressed widely in the nervous system, binds each R7 isoform, lacks a transmembrane domain, and associates with membranes by covalent attachment of the fatty acid palmitate to two C-terminal cysteine residues (22-24). In striatum, R7BP stabilizes RGS9 expression and function as a regulator of motor coordina...