The loop of a stem structure close to the 5 end of the 18S rRNA is complementary to the box A region of the U3 small nucleolar RNA (snoRNA). Substitution of the 18S loop nucleotides inhibited pre-rRNA cleavage at site A 1 , the 5 end of the 18S rRNA, and at site A 2 , located 1.9 kb away in internal transcribed spacer 1. This inhibition was largely suppressed by a compensatory mutation in U3, demonstrating functional base pairing. The U3-pre-rRNA base pairing is incompatible with the structure that forms in the mature 18S rRNA and may prevent premature folding of the pre-rRNA. In the Escherichia coli pre-rRNA the homologous region of the 16S rRNA is also sequestered, in that case by base pairing to the 5 external transcribed spacer (5 ETS). Cleavage at site A 0 in the yeast 5 ETS strictly requires base pairing between U3 and a sequence within the 5 ETS. In contrast, the U3-18S interaction is not required for A 0 cleavage. U3 therefore carries out at least two functionally distinct base pair interactions with the pre-rRNA. The nucleotide at the site of A 1 cleavage was shown to be specified by two distinct signals; one of these is the stem-loop structure within the 18S rRNA. However, in contrast to the efficiency of cleavage, the position of A 1 cleavage is not dependent on the U3-loop interaction. We conclude that the 18S stem-loop structure is recognized at least twice during pre-rRNA processing.Eukaryotic nucleoli contain a large number of small nucleolar RNA (snoRNA) species, most of which function as guides for rRNA modifications. However, a small number of snoRNAs are required for processing of the pre-rRNA (reviewed in references 21 and 36), of which the most studied is U3. Genetic depletion of U3 in the yeast Saccharomyces cerevisiae inhibits three early pre-rRNA cleavage reactions on the pathway of 18S rRNA synthesis (Fig. 1); cleavage is inhibited at sites A 0 (in the 5Ј external transcribed spacer [5Ј ETS]), A 1 (the 5Ј end of the mature 18S rRNA), and A 2 (in internal transcribed spacer 1 [ITS1]) (14). In contrast, the cleavage of site A 3 and sites further in the 3Ј direction on the pathway of 5.8S and 25S synthesis is unaffected by depletion of U3. Depletion of the U3-associated proteins Nop1p, Sof1p, and Mpp10p leads to essentially identical phenotypes (8,15,37), indicating that the intact U3 small nucleolar ribonucleoprotein (snoRNP) particle is required for pre-rRNA cleavage at these sites. Depletion of U3 has also been reported to inhibit in vitro cleavage of the mouse 5Ј ETS (16) and pre-rRNA processing in Xenopus oocytes (5, 30).In vivo psoralen cross-linking experiments identified several sites of interaction between the yeast U3 snoRNA and the pre-rRNA. One was a single-stranded region in the 5Ј region of the U3 snoRNA (nucleotides [nt] 39 to 48) which exhibited a 10-nt complementarity to a region of the 5Ј ETS (nt 470 to 479; approximately 140 nt 5Ј to site A 0 and 230 nt 5Ј to site A 1 ) (3, 4). Disruption of this base pairing blocked cleavage at sites A 0 , A 1 , and A 2 and accumulation ...