Previous studies have shown that the effect of ethanol on glycine receptors (GlyRs) containing the a1 subunit is affected by interaction with heterotrimeric G proteins (Gbg). GlyRs containing the a3 subunit are involved in inflammatory pain sensitization and rhythmic breathing and have received much recent attention. For example, it is unknown whether ethanol affects the function of this important GlyR subtype. Electrophysiologic experiments showed that GlyR a3 subunits were not potentiated by pharmacologic concentrations of ethanol or by Gbg. Thus, we studied GlyR a1-a3 chimeras and mutants to determine the molecular properties that confer ethanol insensitivity. Mutation of corresponding glycine 254 in transmembrane domain 2 (TM2) found in a1 in the a3 A254G -a1 chimera induced a glycine-evoked current that displayed potentiation during application of ethanol (46 6 5%, 100 mM) and Gbg activation (80 6 17%). Interestingly, insertion of the intracellular a3L splice cassette into GlyR a1 abolished the enhancement of the glycine-activated current by ethanol (5 6 6%) and activation by Gbg (21 6 7%). Incorporation of the GlyR a1 C terminus into the ethanol-resistant a3S A254G mutant produced a construct that displayed potentiation of the glycine-activated current with 100 mM ethanol (40 6 6%) together with a current enhancement after G protein activation (68 6 25%). Taken together, these data demonstrate that GlyR a3 subunits are not modulated by ethanol. Residue A254 in TM2, the a3L splice cassette, and the C-terminal domain of a3 GlyRs are determinants for low ethanol sensitivity and form the molecular basis of subtype-selective modulation of GlyRs by alcohol.