A method has been developed for the direct selection of methanol oxidation mutants of the facultative methylotroph Methylobacterium sp. strain AM1 (formerly Pseudomonas sp. strain AM1). Using this direct selection technique, we have isolated mutants of Methylobacterium sp. strain AM1 that are no longer capable of growth on methanol but retain the ability to grow on methylamine. These methanol oxidation (Mox) mutants were complemented with a genomic clone bank of this organism constructed in the broad-host-range cosmid pVK100, and subcloning and TnS mutagenesis experiments have assigned the Mox mutants to 10 distinct complementation groups. Using an open reading frame beta-galactosidase fusion vector and antibodies specific for Methylobacterium sp. strain AMI methanol dehydrogenase, we have identified the methanol dehydrogenase structural gene and determined the direction of transcription. The results suggest that the synthesis and utilization of an active methanol dehydrogenase in this organism requires at least 10 different gene functions.All methylotrophic bacteria that grow on methane or methanol use methanol dehydrogenase (MDH; EC.1.1.99.8) to oxidize methanol to formaldehyde, which may then be further oxidized or assimilated into cell carbon (Fig. 1). This enzyme is a major cellular protein during growth on methane or methanol and is remarkably similar in most methylotrophs (2). However, little is known concerning the details of genetics, expression, assembly, or stability of the methanol oxidation system. We have chosen to study methanol oxidation in Methylobacterium sp. strain AM1 (formerly Pseudomonas sp. strain AM1) for a number of reasons. Strain AM1 is a facultative methylotroph capable of growth on methanol or methylamine but not methane (30), and this organism has been extensively studied and much information is available concerning the biochemistry of C1 metabolism in this organism. The MDH of Methylobacterium sp. strain AM1 has a number of features similar to those of the MDH found in most methanotrophic and methylotrophic bacteria (2, 29) and might represent a model system for the study of the genetics of methanol oxidation in a methylotroph. Perhaps most importantly, the methanol oxidation step can be genetically defined in Methylobacterium sp. strain AM1 by obtaining mutants of this organism no longer able to grow on methanol but still able to utilize methylamine as a growth substrate. Further assimilation and oxidation of formaldehyde by this organism are independent of whether methanol or methylamine is the substrate for growth (Fig. 1)