Dopamine -monooxygenase (DBM) and peptidylglycine ␣-hydroxylating monooxygenase (PHM) are essential for the biosynthesis of catecholamines and amidated peptides, respectively. The enzymes share a conserved catalytic core. We studied the role of the DBM signal sequence by appending it to soluble PHM (PHMs) and expressing the DBMsignal/PHMs chimera in AtT-20 and Chinese hamster ovary cells. PHMs produced as part of DBMsignal/PHMs was active. In vitro translated and cellular DBMsignal/PHMs had similar masses, indicating that the DBM signal was not removed. DBMsignal/PHMs was membrane-associated and had the properties of an intrinsic membrane protein. After in vitro translation in the presence of microsomal membranes, trypsin treatment removed 2 kDa from DBMsignal/PHMs while PHMs was entirely protected. In addition, a Cys residue in DBMsignal/PHMs was accessible to Cys-directed biotinylation. Thus the chimera adopts the topology of a type II membrane protein. Pulse-chase experiments indicate that DBMsignal/PHMs turns over rapidly after exiting the trans-Golgi network. Although PHMs is efficiently localized to secretory granules, DBMsignal/ PHMs is largely localized to the endoplasmic reticulum in AtT-20 cells. On the basis of stimulated secretion, the small amount of PHMs generated is stored in secretory granules. In contrast, the expression of DBMsignal/ PHMs in PC12 cells yields protein that is localized to secretory granules.Catecholamine synthesis from tyrosine involves several cytosolic enzymes and one secretory granule enzyme, dopamine -monooxygenase (DBM) 1 (1). DBM from adrenal chromaffin cells and neurons occurs in soluble and membrane forms (1-3). Although soluble DBM is secreted along with its product catecholamines, membrane DBM undergoes endocytosis (4, 5). DBM monomers form tetramers composed of two noncovalently bound disulfide-linked dimers (6, 7). Soluble and membrane forms of DBM both are heavily glycosylated and derived from a single translation product (8). Phospholipids as well as an uncleaved signal sequence seem to play a role in the attachment of DBM to membranes (8 -10).Sequence analysis of membrane DBM from bovine adrenal medulla revealed an uncleaved signal sequence in 30% of the protein (11). Similarly, sequence analysis of rat DBM produced by in vitro transcription/translation in the presence of microsomal membranes indicated that the signal sequence was not removed (12). These studies suggest that DBM is a type II integral membrane protein. The NH 2 -terminal sequences of rat, mouse, human, and bovine DBM vary in length, but each contains a stretch of 20 hydrophobic amino acids, which is longer than the hydrophobic domains typically found in cleaved signal sequences (13, 14) (Fig. 1A). Although rat and mouse DBM also contain a lengthy stretch of amino acids preceding the hydrophobic domain, human and bovine DBM do not. However, analysis of the genomic sequence encoding human DBM (15, 16) identified an in-frame upstream Met codon that is likely to represent the actual translational sta...