Rod cyclic nucleotide-gated (CNG) channels are heterotetramers comprised of both CNGA1 and CNGB1 subunits. Calcium͞calmod-ulin (Ca 2؉ ͞CaM) binds to a site in the N-terminal region of CNGB1 subunits and inhibits the opening conformational change in CNGA1͞CNGB1 channels. Here, we show that polypeptides derived from an N-terminal region of CNGB1 form a specific interaction with polypeptides derived from a C-terminal region of CNGA1 that is distal to the cyclic nucleotide-binding domain. Deletion of the Ca 2؉ ͞CaM-binding site from the N-terminal region of CNGB1 eliminated both Ca 2؉ ͞CaM modulation of the channel and the intersubunit interaction. Furthermore, the interaction was disrupted by the presence of Ca 2؉ ͞CaM. These results suggest that Ca 2؉ ͞CaM-dependent inhibition of rod channels is caused by the direct binding of Ca 2؉ ͞CaM to a site in the N-terminal region in CNGB1, which disrupts the interaction between this region and a distal C-terminal region of CNGA1. The mechanism underlying Ca 2؉ ͞CaM modulation of rod channels is distinct from that in olfactory (CNGA2) CNG channels. C yclic nucleotide-gated (CNG) channels were first characterized in retinal rods, where they conduct a cation current in response to changes in intracellular levels of cGMP and mediate the electrical response to light (1). CNG channels also are found in olfactory neurons, where they respond to changes in internal cAMP and underlie the electrical response to odorants (2). Evidence exists for a cyclic nucleotide-dependent conductance in taste receptors (3,4). CNG channels are present in a variety of other tissues, including heart, aorta, and kidney (for a review see ref. 5).CNG channels were first cloned from retina (6) and olfactory neurons (7). Four channel subunits are arranged to form a tetramer with a central pore (8,9). Subunits have six proposed membrane-spanning domains, a pore-loop domain, and intracellular N-and C-terminal regions, a topology similar to that of the voltage-activated potassium channels (10). However, CNG channels are only weakly sensitive to membrane voltage. Instead, they contain a large C-terminal cyclic nucleotide-binding domain (CNBD) that exhibits sequence similarity with other cyclic nucleotide-binding proteins (11,12). CNG channels are activated by the direct binding of cyclic nucleotides to the CNBD (13).At present, there are six types of mammalian CNG channel genes. The genes are grouped according to sequence similarity into two subtypes, CNGA and CNGB (14). CNGA1, CNGA2, and CNGA3 subunits form functional homomeric channels when expressed alone, whereas CNGB1, CNGB3, and CNGA4 subunits do not appear to form functional homomeric channels when expressed alone. Instead, CNGB1, CNGB3, and CNGA4 subunits form heteromeric channels when coexpressed with CNGA1, CNGA2, or CNGA3 subunits (15).Native retinal rod channels comprise CNGA1 (formerly CNG1; Rod ␣) and CNGB1 (formerly CNG4; Rod ) subunits. CNGA1͞CNGB1 heterotetramers contain two CNGA1 subunits and two CNGB1 subunits (16,17). Compared with CNGA1 ...