A high-molecular-weight protein complex that is capable of accurate transcription initiation and termination of vaccinia virus early genes without additional factors was demonstrated. The complex was solubilized by disruption of purified virions, freed of DNA by passage through a DEAE-celiulose column, and isolated by glycerol gradient sedimentation. All detectable RNA polymerase activity was associated with the transcription complex,-whereas the majority of enzymes released from virus cores including mRNA (nucleoside-2'-O)methyltransferase, poly(A) polymerase, topoisomerase, nucleoside triphosphate phosphohydrolase H, protein kinase, and single-strand DNase sedimented more slowly. Activities corresponding to two enzymes, mRNA guanylyltransferase (capping enzyme) and nucleoside triphosphate phosphohydrolase I (DNAdependent ATPase), partially sedimented with the complex. Silver-stained polyacrylamide gels, immunoblots, and autoradiographs confirmed the presence of subunits of vaccinia virus RNA polymerase, mRNA guanylyltransferase, and nucleoside triphosphate phosphohydrolase I, as well as additional unidentified polypeptides, in fractions with transcriptase activity. A possible role for the DNA-dependent ATPase was suggested by studies with ATP analogs with y-S or nonhydrolyzable 0-y-phosphodiester bonds. These analogs were used by vaccinia virus RNA polymerase to nonspecifically transcribe single-stranded DNA templates but did not support accurate transcription of early genes by the complex. Transcription also was sensitive to high concentrations of novobiocin; however, this effect could be attributed to inhibition of RNA polymerase or ATPase activities rather than topoisomerase.Among the eucaryotic DNA viruses, only members of the poxvirus family encode their own DNA-dependent RNA polymerase. The vaccinia virus RNA polymerase resembles the corresponding cellular enzyme with regard to the number and size of subunits (3,20,32). The largest subunits of vaccinia virus and eucaryotic RNA polymerases II and III share extensive sequence homology (5), and similarities between other subunits are anticipated. The RNA polymerase and additional enzymes used for capping, methylation, and polyadenylation of mRNA are present in the infectious particle and permit the rapid expression of early genes in the cytoplasm of host cells. The subviral location of these enzymes also segregates them from most cellular proteins thereby greatly facilitating analysis of the components of the transcription machinery. Soluble extracts of purified vaccinia virus (11,25), like extracts of infected cells (8,24), are able to transcribe DNA templates containing early genes in vitro. Furthermore, this system is unique in its ability to accurately initiate and terminate mRNAs (25a). The promoters of early genes appear to be located within a short, approximately 30-base-pair region preceding the RNA start site (6; J. Weir and B. Moss, manuscript in preparation). The termination mechanism involves the recognition of a specific signal located upstream...