Recombinant plasmids containing either the entire polyoma viral genome or one or the other of the two HindIl fragments of polyoma virus DNA were constructed and cloned in Escherichis coli X1776, and their DNAs were individually tested for the capacity to transform an established line of rat cells. The recombinant plasmids containing the entire polyoma genome and those containing the HindIII-1 fragment of polyoma DNA (45-1.4 map units) efficiently transform rat cells, whereas the plasmids containing the HindU-2. fragment (1.445.0 map units) do not. The properties of many independent transformed cell lines established by infection with the cloned HindIII-1 fragment were determined. In contrast to the parent cell line, rat cells transformed with the cloned HindIII-1 fragment grow to high saturation densities, form colonies with high efficiency in dilute agar suspension, produce high levels of plasminogen activator, and display a disorganized arrangement of actin cables. By all criteria examined, these cells transformed by fragments are indistinguishable from cells transformed by whole polyoma viral DNA. Cellular DNA prepared from many HindIII-1 fragment-transformed cell lines was analyzed for the presence and arrangement of polyoma viral sequences by Southern blot-hybridization. In all cases examined, only those viral sequences contained within the HindIII-1 fragment of polyoma DNA were detected. These data establish a strong correlation between polyoma DNA sequences mapping within a restricted portion of the early region and the induction and maintenance of the transformed phenotype. The transforming region of the polyoma viral genome has not been precisely defined, though a wealth of evidence links cell transformation to the early region (70-26 map units, Fig. 1 Fig. 1) enhances the tumorigenic capacity of the DNA in newborn hamsters. These observations suggest that not all of the early region may be required for transformation. To determine which segment of polyoma virus DNA is required to transform cells, we have measured the capacity of cloned subgenomic fragments of viral DNA to transform cells in culture. Using this approach, we have been able to localize the transforming gene(s) of polyoma virus to a restricted portion of the viral genome containing only part of the early region.MATERIALS AND METHODS Cell Culture and Transformation. The Rat-i cells used in this work were obtained from C. Basilico and recloned in our laboratory. Rat-i cells are a subclone of Fisher rat F2408 cells (15). Transfections with viral and plasmid DNAs were performed as described (16), using intact plasmids purified on CsCl gradients. The plasmids appeared as homogeneous monomeric molecules after gel electrophoresis, although the presence of small quantities of multimeric molecules is possible. After transfection with DNA, the cells were incubated for 2-3 weeks, and transformants were scored as dense foci. To isolate transformed cell lines, individual foci from separate Petri dishes were ringed with stainless steel cylinder...