In an investigation of the possible involvement of a highly purffied nucleolar endoribonuclease in processing of pre-rRNA at the 3' end of the 18S rRNA sequence, an in vitro synthesized pre-18S rRNA transcript containing the 3' end region of 18S rRNA and the 5' region of the first internal transcribed spacer (ITS1) was used as a substrate for the enzyme. Cleavages generated by the nucleolar RNase were localized by S1 nuclease protection analysis and by the direct release of labeled rRNA products. Transcription of mammalian rRNA in the nucleolus produces a large precursor transcript which is subsequently processed to the mature 18S, 5.8S, and 28S rRNAs. The release of lower-molecular-weight mature rRNA species from the precursor requires at least six cleavages; however, the order of intermediates formed and the accuracy of processing may vary with growth and between species (1,4,6,13,14). Several of these cleavages have been identified and mapped in vivo (1,4,6,7,11,12). For example, Bowman et al. (3) have shown that an early cleavage can directly generate the mature 5'-end of the 18S rRNA in mouse cells. In contrast, an early cleavage which generates the mature 5' end of 5.8S rRNA apparently occurs at two different locations, one which is upstream from the 5' terminus by 5 to 7 nucleotides. In addition, the 5' terminus of the 28S rRNA may be formed by an initial cleavage within the second internal transcribed spacer (ITS2) followed by cleavages which generate the mature 5' terminus of the 28S rRNA. These examples suggest that trimming processes may also be involved in the formation of mature rRNA products. Early cleavage events were also inferred from results obtained by using transfected mouse rDNA segments in CHO cells (19). In these studies, Si protection analysis detected processing cleavages which included the +650 site, the 3' end of 18S rRNA, and a rapidly cleaved site in the first internal transcribed spacer (ITS1).Although the sites for processing have been reasonably well defined, the enzymatic machinery responsible for cleavage at these sites has not been elucidated. To more accurately define the enzymes and proteins involved in the processing of mammalian rRNA, investigators in our laboratory have isolated and characterized a number of nucleolus-associated 16 single-strand-specific endoribonuclease, was recently shown to accurately carry out in vitro processing at the +650 site in mouse 5' external transcribed spacer (20). This nucleolar RNase, whose attack of RNA is limited by the presence of secondary structure in the RNA molecule (9), was purified from nucleoli of Ehrlich ascites tumor cells. The enzyme makes endonucleolytic cleavages in single-stranded regions of RNA, leaving a 5'-terminal phosphate at the site of cleavage. The endoribonuclease has a native molecular mass of approximately 51,000 daltons and requires either Mg2+ or Mn2+ for activity (8). In the work described in this report, we have examined the ability of the nucleolar endoribonuclease to process in the 3' region of pre-18S rRNA...