Because retention of mutant ␣ 1 -antitrypsin (␣ 1 -AT) Z in the endoplasmic reticulum (ER) is associated with liver disease in ␣ 1 -AT-deficient individuals, the mechanism by which this aggregated glycoprotein is degraded has received considerable attention. In previous studies using stable transfected human fibroblast cell lines and a cell-free microsomal translocation system, we found evidence for involvement of the proteasome in degradation of Chem. 275, 25015-25022) found that degradation of ␣ 1 -ATZ in a stable transfected murine hepatoma cell line was inhibited by tyrosine phosphatase inhibitors, but not by the proteasomal inhibitor lactacystin and concluded that the proteasome was only involved in ER degradation of ␣ 1 -ATZ in nonhepatocytic cell types or in cell types with levels of ␣ 1 -AT expression that are substantial lower than that which occurs in hepatocytes. To examine this important issue in further detail, in this study we established rat and murine hepatoma cell lines with constitutive and inducible expression of ␣ 1 -ATZ. In each of these cell lines degradation of ␣ 1 -ATZ was inhibited by lactacystin, MG132, epoxomicin, and clasto-lactacystin -lactone. Using the inducible expression system to regulate the relative level of ␣ 1 -ATZ expression, we found that lactacystin had a similar inhibitory effect on degradation of ␣ 1 -ATZ at high and low levels of ␣ 1 -AT expression. Although there is substantial evidence that other mechanisms contribute to ER degradation of ␣ 1 -ATZ, the data reported here indicate that the proteasome plays an important role in many cell types including hepatocytes.The classical and most common form of ␣ 1 -antitrypsin (␣ 1 -AT) 1 deficiency is a relatively unique genetic disease in that it is associated with injury to one tissue, pulmonary emphysema, by a loss-of-function mechanism and injury to another tissue, chronic hepatitis/hepatocellular carcinoma, by a gain-of-function mechanism. Many studies have provided evidence that emphysema results from lack of the anti-elastase activity of ␣ 1 -AT in the lung (reviewed in Refs. 1 and 2). Liver disease is due to toxic effects of aggregated ␣ 1 -ATZ retained in the ER of liver parenchymal cells. The gain-of-function mechanism is most clearly demonstrated by experiments in mice transgenic for human ␣ 1 -ATZ. These mice develop liver injury and hepatocellular carcinoma despite the fact that they have their own endogenous anti-elastases (3-5).The mutant Z allele of ␣ 1 -AT is characterized by a single nucleotide substitution, which results in the replacement of glutamate 342 by a bulky lysine residue (1, 2). The studies of Carrell and Lomas (6, 7) have shown that this substitution renders the ␣ 1 -AT molecule more susceptible to polymerization and that highly ordered aggregates accumulate in the ER of liver cells.One interesting observation, arising from unbiased nationwide screening studies of ␣ 1 -AT deficiency in Sweden, indicates that only 10 -15% of deficient individuals develop clinically significant liver disease (8,9...