inhibitor, blocked the stimulatory effect of BMP7 on mIMCD-3 cell morphogenesis but had no effect on BMP7-dependent inhibition in a three-dimensional culture model. To identify mechanisms by which BMP7-dependent inhibitory signaling suppresses p38 MAPK activity, we measured p38 MAPK activity in ligand independent mIMCD-3 models of enhanced and suppressed Smad signaling. Basal activity of p38 MAPK was decreased in mIMCD-3 cells and in embryonic kidney tissue expressing a constitutively active activin-like kinase receptor, but was increased in mIMCD-3 cells stably expressing a dominant negative form of Smad1. We conclude that BMP7 stimulates renal epithelial cell morphogenesis via p38 MAPK and that p38 MAPK activity is negatively regulated by Smad1.Renal branching morphogenesis, defined as growth and branching of epithelial tubules during embryogenesis, is dependent on reciprocal inductive tissue interactions between the mesenchymal metanephric blastema and the epithelial ureteric bud and its daughter collecting ducts. These interactions are mediated, in part, by secreted growth factors and their cognate signaling effectors. Bone morphogenetic protein (BMP) 1 -7, a member of the transforming growth factor (TGF)- superfamily, modulates renal branching morphogenesis, consistent with its spatial expression pattern during branching morphogenesis (1) and the arrested branching phenotype observed in Bmp7 null mice (2, 3). The response of ureteric bud and collecting duct cells to BMP7 is complex and distinct from that of other members of the TGF- superfamily. BMP7 exerts dose-dependent and opposite effects on ureteric bud morphogenesis in embryonic kidney explants treated with BMP7-agarose beads and in the murine inner medullary collecting duct (mIMCD-3) cell culture model (4, 5). In contrast, BMP2, a related TGF- superfamily member expressed during renal embryogenesis, only inhibits ureteric bud and collecting duct morphogenesis in a monophasic dose-dependent manner (4). These findings suggest that BMP7 acts via distinct intracellular signaling pathways to exert stimulatory and inhibitory effects.BMPs initiate intracellular signaling after binding to cell surface type I (activin-like kinase (ALK)) and type II serine/ threonine kinases. Upon ligand binding, the type II receptor, BMPRII, transphosphorylates and activates the ALK receptor. ALK receptors signal via Smad proteins and mitogen-activated protein kinases (MAPK). Activation of the ALK receptor leads to association and phosphorylation of a receptor-activated Smad protein. Phosphorylation induces the receptor-activated Smad to dissociate from the receptor, stimulates the assembly of a heteromeric complex between the phosphorylated receptoractivated Smad and the co-Smad, Smad 4, and induces nuclear accumulation of this complex (6). We have demonstrated that BMPs inhibit renal epithelial cell morphogenesis after binding ALK receptors and activating receptor-dependent Smads (7,8). In the case of BMP7, high doses activate Smad1 and induce formation of Smad1-Smad4 mo...