11-Hydroxysteroid dehydrogenase enzymes (11-HSDSequence alignment and molecular modeling of human 11-HSD1 1 and human 11-HSD2, using the known three-dimensional structures of human dihydropteridine reductase and Streptomyces hydrogenans 20-HSD as templates, indicated that the structures of these members of the short chain dehydrogenase reductase family of proteins are very similar, despite only 18% sequence identity between their entire sequences (1). Although both 11-HSD enzymes control the conversion of biologically active glucocorticoids (cortisol in humans and corticosterone in rats and mice) to their inactive 11-keto forms (cortisone and 11-dehydrocorticosterone), there are important functional differences such as cofactor specificity, substrate affinity, or direction of the reaction. The isoform 11-HSD1 is expressed in a wide array of tissues, with highest levels in the liver, from where it was purified originally (2). It catalyzes both the oxidation and reduction of glucocorticoids but acts predominantly as an oxidoreductase, thereby increasing the concentration of active glucocorticoids (3-8). Studies on the purified protein demonstrated glycosylation and existence of a disulfide bond, suggesting that the bulk of 11-HSD1 is oriented to the ER lumen (9). By converting 11-keto-into 11-hydroxyglucocorticoids, 11-HSD1 plays an important role in the glucocorticosteroid receptor-mediated anti-inflammatory response of glucocorticoids (10). Mice deficient in 11-HSD1 were found to resist hyperglycemia provoked by obesity or stress (11). Other investigators provided evidence that 11-HSD1 plays a role in detoxification processes (12) and in the reductive metabolism of xenobiotics (13).The isoform 11-HSD2 is expressed at high levels in mineralocorticoid target cells such as the renal collecting duct cells (14 -17). 11-HSD2 catalyzes exclusively the dehydrogenation of 11-hydroxyglucocorticoids, utilizes NAD ϩ as a cofactor, and has a nanomolar K m for glucocorticoids (14 -18). By inactivating biologically active glucocorticoids before they occupy mineralocorticoid receptors (MR), 11-HSD2 confers aldosterone selectivity for the MR (19,20). In the syndrome of apparent mineralocorticoid excess (21-23) or in mice lacking 11-HSD2 (24), deficiency of 11-HSD2 allows glucocorticoids to bind to the MR in the distal tubule, leading to sodium retention, hypokalemia, and severe hypertension. Reports on the intracellular localization of 11-HSD2 are controversial. Whereas 11-HSD2 has been reported to be a microsomal enzyme (15,25) with exclusive localization to the ER membrane and the protein facing the cytoplasm (26 -28), evidence for nuclear localization was also presented (29 -34).To understand the differences in the physiological functions of 11-HSD1 and 11-HSD2, it is of great interest to know the exact topology and intracellular localization of these enzymes. Therefore, we evaluated the role of the N-terminal anchor sequences of 11-HSD1 and 11-HSD2 on their topology, in-