We have used a complete, synthetic precursor to adipokinetic hormone I (AKH I) and oligopeptides derived from this precursor as substrates for prohormone-processing enzymes extracted from AKH-synthesizing neurosecretory cells to reconstitute the post-translational steps in AKH biosynthesis in vitro. The results demonstrate the existence of endoproteolytic activity which cleaves the precursor only at the appropriate processing site (at the C-terminal side of Argl3). Further proteolytic processing of C-terminally extended AKH I (AKH-Gly-Lys-Arg) by a carboxypeptidase H-like activity removes the basic residues producing AKH-Gly-Lys, followed by AKH-Gly. Finally, a peptidylglycine-a-amidating-monooxygenase activity produces the amidated bioactive product from the glycine-extended peptide in a two-step process, the first of which requires ascorbate and Cu". Our results show that all steps in AKH precursor processing can be reconstituted and studied in vitro, providing a system to characterize the processing enzymes and to investigate the development of enzyme inhibitors for use as potential insecticides.Neuropeptides are produced by specific, limited proteolysis of larger precursor polypeptides, or prohormones (Docherty and Steiner, 1982;Sossin et al., 1989;Darby and Smyth, 1990). Prohormones are cleaved by endoproteases, often at sites adjacent to pairs of basic amino acid residues (e.g. lysine, arginine). This initial step has been attributed in some cases to members of a recently identified superfamily of subtilisin-like endopeptidases referred to as prohormone convertases (Steiner et al., 1992). Endoproteolytic cleavage is followed by removal of basic residues from C-terminally extended processing intermediates by carboxypeptidase H (also referred to as carboxypeptidase E; Fricker, 1988;Skidgel, 1988). For neuropeptides which require C-terminal amidation, glycine is normally the residue which, via the action of the peptidylglycine-a-amidating-monooxygenase (PAM) enzymes, contributes its amino group to form an amidated C-terminus (Eipper et al., 1992).