Chromosomal rearrangements are important resources for genetic studies. Recently, a Cre-loxP-based method to introduce defined chromosomal rearrangements (deletions, duplications, and inversions) into the mouse genome (chromosome engineering) has been established. To explore the limits of this technology systematically, we have evaluated this strategy on mouse chromosome 11. Although the efficiency of Cre-loxPmediated recombination decreases with increasing genetic distance when the two endpoints are on the same chromosome, the efficiency is not limiting even when the genetic distance is maximized. Rearrangements encompassing up to three quarters of chromosome 11 have been constructed in mouse embryonic stem (ES) cells. While larger deletions may lead to ES cell lethality, smaller deletions can be produced very efficiently both in ES cells and in vivo in a tissue-or cell-type-specific manner. We conclude that any chromosomal rearrangement can be made in ES cells with the Cre-loxP strategy provided that it does not affect cell viability. In vivo chromosome engineering can be potentially used to achieve somatic losses of heterozygosity in creating mouse models of human cancers.Specific chromosomal rearrangements can be engineered in mice to model human chromosomal disorders, such as those associated with deletions or duplications of chromosomal segments (for example, Smith-Magenis syndrome, Downs syndrome, and Charcot-Marie-Tooth type 1A) (5, 7, 10). Chromosomal rearrangements also facilitate genetic studies (2, 14). Inversion chromosomes can be used to establish balanced lethal systems to facilitate stock maintenance. Deletions can be used for mapping and in genetic screens for recessive mutations.In Drosophila melanogaster there is a wealth of chromosomal rearrangements that are widely used as genetic tools. In particular, chromosomal deletions (deficiencies) which collectively cover approximately 60 to 70% of the genome have been indispensable in mapping recessive mutations and in regionspecific mutagenesis screens. The use of deletions in mice, however, has been much more limited because of the paucity of chromosomal deletions which, until recently, were restricted to a few regions of the mouse genome flanking visible genetic markers (14). The application of the Cre-loxP recombination system over large distances in mouse embryonic stem (ES) cells has made it possible to engineer specific chromosomal rearrangements in the mouse (13,17). This chromosome engineering strategy involves three manipulation steps in ES cells (see Fig. 1): (i) one loxP site is targeted to one endpoint along with the 5Ј half of an Hprt selectable marker gene (5Ј hprt); (ii) another loxP site is targeted to a second endpoint with the 3Ј half of the Hprt gene (3Ј hprt); and (iii) transient expression of Cre recombinase catalyzes loxP site-specific recombination, leading to the desired rearrangement. Reconstitution of a fulllength Hprt gene provides selection for ES cells with the recombination products in culture in HAT (hypoxanthine-amin...