␥-Secretase cleaves the transmembrane domain of -amyloid precursor protein at multiple sites referred to as ␥-, ⑀-, and -cleavage sites. We previously showed that N-[N-(3,5-difluorophenacetyl)-L-alanyl]-S-phenylglycine t-butyl ester (DAPT), a potent dipeptide ␥-secretase inhibitor, causes differential accumulation of longer amyloid -proteins (As) within Chinese hamster ovary cells co-expressing  C-terminal fragment and wild-type presenilin 1 (C99/wtPS1 cells). In this study, we used sucrose density gradient centrifugation to fractionate the membranes from C99/wtPS1 cells that had been pretreated with DAPT. We found that accumulating A46 localized exclusively to low density membrane (LDM) domains. Incubating the A46-accumulating LDM domains at 37°C produced A40, A42, A43, and -amyloid precursor protein intracellular domain. The addition of L685,458 completely prevented -amyloid precursor protein intracellular domain generation and resulted in a large decrease in the level of A46 and the concomitant appearance of A40 and A43 but not A42. Further addition of DAPT suppressed the production of A40/43 and abolished the decrease in the amount of A46. These data indicate that preaccumulated A46 is processed by ␥-secretase to A40/43 but not to A42 in the LDM domains. The amount of newly produced A40 and A43 was roughly equivalent to the decrease in the amount of A46. Temporal profiles did not show a maximal concentration for A43, suggesting that A46 is processed to A40 and A43 through a nonsuccessive process.2 is the major component of the senile plaque, a neuropathological hallmark of Alzheimer disease (AD). A is produced from -amyloid precursor protein (APP), through sequential cleavages by two membrane proteases referred to as -and ␥-secretases (1). -Secretase, or -site APP-cleaving enzyme 1 (2), is a membrane-bound aspartyl protease that cleaves APP in its luminal region, generating a 99-residue fragment (C99) called  C-terminal fragment (CTF). CTF in turn is cleaved in the middle of its transmembrane domain by ␥-secretase, releasing A and APP intracellular domain (AICD). Accumulating evidence strongly suggests that ␥-secretase is also an aspartyl protease of high molecular weight protein complex (3), which includes at least four distinct membrane proteins, presenilin (PS) 1 or 2, nicastrin, Aph-1, and Pen-2. In particular, PS1 or PS2 is believed to compose the catalytic site(s) of ␥-secretase (4 -6).Whereas the most abundantly secreted A species is A40, the minor, two-residue longer one, A42, is by far the predominant species deposited in senile plaques (7). Thus far, three causative genes for familial AD (FAD), APP, PS1, and PS2, have been identified, and the FAD mutations on those genes increase the proportion of A42 relative to the total A produced (1). Because A42 production or deposition is the key factor in the development of AD, the regulatory mechanisms of intramembrane cleavage at A40 and A42 sites (␥-cleavage sites) are a pivotal issue for understanding ␥-secreta...