Retinoic acid is generated by a two-step mechanism. First, retinol is converted into retinal by a retinol dehydrogenase, and, subsequently, retinoic acid is formed by a retinal dehydrogenase. In vitro, several enzymes are suggested to act in this metabolic pathway. However, little is known regarding their capacity to contribute to retinoic acid biosynthesis in vivo. We have developed a versatile cell reporter system to analyze the role of several of these enzymes in 9-cis-retinoic acid biosynthesis in vivo. Using a Gal4-retinoid X receptor fusion proteinbased luciferase reporter assay, the formation of 9-cisretinoic acid from 9-cis-retinol was measured in cells transfected with expression plasmids encoding different combinations of retinol and retinal dehydrogenases. The results suggested that efficient formation of 9-cisretinoic acid required co-expression of retinol and retinal dehydrogenases. Interestingly, the cytosolic alcohol dehydrogenase 4 failed to efficiently catalyze 9-cis-retinol oxidation. A structure-activity analysis showed that mutants of two retinol dehydrogenases, devoid of the carboxyl-terminal cytoplasmic tails, displayed greatly reduced enzymatic activities in vivo, but were active in vitro. The cytoplasmic tails mediate efficient endoplasmic reticulum localization of the enzymes, suggesting that the unique milieu in the endoplasmic reticulum compartment is necessary for in vivo activity of microsomal retinol dehydrogenases.Retinol (vitamin A) and its derivatives are essential dietary compounds needed in a variety of physiological processes, e.g. embryonic development, reproduction, cell differentiation, postnatal growth, maintenance of the immune system, and vision (1-3). The metabolically active retinoids are 9-cis-retinoic acid (9cRA) 1 and all-trans-retinoic acid (atRA) in extraocular tissues, acting as ligands for two classes of nuclear retinoid receptors, the retinoic acid receptors (RARs) and the retinoid X receptors (RXRs) (4). In ocular tissues, 11-cis-retinal serves as the chromophore of the visual pigments (2).Most cells obtain all-trans-retinol as the main source of retinoids, and it is known that activation of retinol into the active metabolites occur via tissue-specific isomerization and oxidation reactions. First, 9-cis-, 11-cis-, or all-trans-retinols are oxidized by retinol dehydrogenases (RDHs) into the corresponding retinals. For generation of the two isomers of RA, 9-cis-and all-trans-retinal are then further oxidized by a class of retinal dehydrogenases (Raldhs) (for reviews, see Refs. 5 and 6). It has been suggested that oxidation of the two isomers of retinol are the rate-limiting factors in the pathways generating 9cRA and atRA.Two classes of RDHs have been implicated in oxidation of the different stereo isomers of retinol, i.e. microsomal members of the short chain alcohol dehydrogenase/reductases, and the cytosolic medium chain alcohol dehydrogenases (ADHs). Several members of both classes of enzymes can oxidize different stereo isomers of retinol in vitro. However,...