We have isolated a collection of peroxisome degradation-deficient (Pdd ؊ ) mutants of the yeast Hansenula polymorpha which are impaired in the selective autophagy of alcohol oxidase-containing peroxisomes. Two genes, designated PDD1 and PDD2, have been identified by complementation and linkage analyses. In both mutant strains, the glucose-induced proteolytic turnover of peroxisomes is fully prevented. The pdd1 and pdd2 mutant phenotypes were caused by recessive monogenic mutations. Mutations mapped in the PDD1 gene appeared to affect the initial step of peroxisome degradation, namely, sequestration of the organelle to be degraded by membrane multilayers. Thus, Pdd1p may be involved in the initial signalling events which determine which peroxisome will be degraded. The product of the PDD2 gene appeared to be essential for mediating the second step in selective peroxisome degradation, namely, fusion and subsequent uptake of the sequestered organelles into the vacuole. pdd1 and pdd2 mutations showed genetic interactions which suggested that the corresponding gene products may physically or functionally interact with each other.In yeasts, peroxisomes develop in response to metabolic needs (23,28). In Hansenula polymorpha, the organelles are strongly induced by methanol and, to a lesser extent, by a number of unusual nitrogen sources, including primary amines. The opposite may also occur: under certain conditions, peroxisomes may be actively degraded after a shift of cells to a new environment in which the organelles become redundant for growth (32).At present, two conditions which lead to a rapid turnover of alcohol oxidase-containing peroxisomes in H. polymorpha are known, namely, a shift of cells from methylotrophic to nonmethylotrophic conditions (29, 32) and irreversible inactivation of the organellar function (21, 27).The degradation process appeared to be energy dependent (29). The peroxisomes are degraded individually by a highly selective autophagic process, and the degradation process appeared to be identical under either of the above conditions. As an initial step, organelles to be degraded were sequestered from the cytosol by a number of membranous layers, closely surrounding the organelle, which most probably were derived from the endoplasmic reticulum; subsequently, hydrolytic enzymes required for the degradation of the microbody contents were supplied by fusion of part of the vacuole with the sequestered organelle (21,27,29,32). The degradation of peroxisomes in H. polymorpha is a rapid process; generally, the total turnover of a single organelle is accomplished within 20 to 45 min (29). However, not all organelles of the peroxisomal population present in one cell are affected: in particular, the large mature peroxisomes are rapidly degraded. These and other results (26) strongly suggest that the organelles destined for degradation are specifically tagged. Recently, we have obtained indirect evidence that the signals, initiating peroxisome turnover, are not directed against the matrix proteins but inst...