We observed striking differences between the tumorigenic colony-forming cells present in the spleens of mice late after infection with the anemia-inducing strain of Friend leukemia virus (strain FV-A) and those present after infection with the polycythemia-inducing strain (strain FV-P). Cells within primary colonies derived from FV-A-and FV-P-transformed cells (CFU-FV-A and CFU-FV-P, respectively) contained hemoglobin and spectrin, indicating that the CFU-FV-A and CFU-FV-P were transformed erythroid progenitor cells. The proportion of cells containing hemoglobin was relatively high (>25%) in newly isolated cell lines , derived from CFU-FV-P colonies, whereas cell lines derived from CFU-FV-A colonies had only low levels (O to 2%) of hemoglobin-containing cells. A high proportion of the cell lines derived from CFU-FV-A colonies responded to pure erythropoietin and accumulated spectrin and hemoglobin, whereas the cell lines derived from CFU-FV-P colonies did not. A cytogenetic analysis indicated that primary CFU-FV-P colony cells were diploid, whereas chromosomal aberrations were observed in the immediate progeny of CFU-FV-A. The presence of unique chromosomal markers in the majority of the cells within individual colonies derived from CFU-FV-A suggested that these colonies originated from single cells. Finally, leukemic progenitor cells transformed by strain FV-A appeared to have an extensive capacity to self-renew (i.e., form secondary colonies in methylcellulose), whereas a significant proportion of the corresponding cells transformed by strain FV-P did not. In addition, the self-renewal capacity of both CFU-FV-A and CFU-FV-P increased as the disease progressed. From these observations, we propose a model for the multistage nature of Friend disease; this model involves clonal evolution and expansion from a differentiating population with limited proliferative capacity to a population with a high capacity for selfrenewal and proliferation.Two distinct isolates of Friend leukemia virus have been described, and both of these isolates induce rapid splenomegaly and erythroleukemia in susceptible adult mice. The original isolate (strain FV-A) (11) induces anemia, whereas the later isolate (strain FV-P), which was derived from stocks of FV-A (38), induces polycythemia. In addition to these opposite effects on the levels of erythrocytes in the peripheral blood, the diseases induced by FV-A and FV-P can be distinguished by the different responses of erythroid progenitor cells to the hormnone erythropoietin (Epo). Erythropoiesis in FV-A-infected mice appears to remain under the control of Epo in vivo (49), whereas erythropoiesis in FV-P-infected t Present address: