Harvey murine sarcoma virus (Ha-MuSV) is a mouse-rat recombinant retrovirus that encodes a protein designated p21, required for virally induced transformation. Using a radiolabeled DNA fragment from the p21 coding region, we have detected homologous DNA sequences in the normal DNA of rats and of several other vertebrate species. Moreover, many tested cells from these species contain low levels of a p21 protein that is highly related to viral 21. Now we report two independent fragments from normal rat DNA containing sequences (sarc) homologous to the Ha-MuSV transforming region that were cloned in the bacteriophage vector Charon 4A. Sarc sequences in the one fragment are completely colinear with the viral sequences and share apparently all restriction endonuclease sites. Sarc sequences in the second fragment have several sets of intervening sequences and lack some restriction endonuclease sites found in the viral transforming region. Despite the presence of these intervening sequences in the second sarc fragment, we have been able to ligate this sarc fragment to the long terminal repeat sequence of HaMuSV and to induce cellular transformation and high levels of p21 expression upon transfection of this DNA to NIH 3T3 mouse cells. These results suggest that elevated levels of p21, normally expressed at low levels in a variety of cells, can induce cellular transformation.Retroviruses can be grouped into two broad classes based upon their biological activities: the nontransforming leukemia or leukosis viruses and the transforming sarcoma or acute leukemia viruses (1). The molecular biology of the transforming viruses, such as Rous sarcoma virus, Moloney murine sarcoma virus (Mo-MuSV), Abelson murine leukemia virus, and Harvey murine sarcoma virus (Ha-MuSV), has been of special interest because viruses ofthis class enable cellular transformation related to a defined genetic sequence and its gene product(s) to be studied in great detail and under a high degree ofexperimental control. Accordingly, the genetic origin and transforming proteins of these viruses have come under close scrutiny (2-10).Our laboratory has been investigating the molecular biology of Ha-MuSV, a replication-defective retrovirus derived after injection of a mouse leukemia virus into a rat (11). Similar to sequences in the above-mentioned viruses, the Ha-MuSV src gene sequences are derived from (rat) cellular unique sequences (10). These viral src sequences encode the transformation-specific p21 protein (12, 13) and the p21 biochemical activities, which specifically use guanine nucleotides (14,15). Consistent with the conserved nature of these sequences is the expression ofa related, but distinguishable p21 sarc protein in normal cells from a wide variety of species (16).In order to understand better any differences in the structure, biology, and regulation of expression between the viral p21 src and the related cellular p21 sarc protein, we have initiated studies into the structure and function of rat sarc genes. In this report, we describ...