The recent identification and cloning of mammalian transforming growth factor beta (TGF beta) receptors permits further analysis of the importance of the TGF beta family in intestinal biology, Expression of the type II TGF beta receptor was examined in gastrointestinal cell lines and tissues, The 5.5 kb type II mRNA species was detected in poly-(A) mRNA isolated from the rat small: bowel and colon, Northern blot analysis of RNA isolated from epithelial and non-epithelial small intestinal cell fractions showed the majority of receptor mRNA localized in the non-epithelial compartment. Immunohistochemical localization in the small intestine and colon supported the RNA findings; that is, expression was greatest in the lamina propria and muscularis. Staining was also detectable in the epithelium, where it was mast prominent in the villus tip cells and absent in crypt cells, These findings mirror expression of TGF beta in the epithelial compartment. The IEC-6, IPEC and RIE-1 cell lines, all of which are non-transformed, were growth inhibited by TGF beta and expressed type II receptor mRNA and protein, By contrast, the ras-transfected RIE-1, HT-29, Caco-2 and SW-620 transformed lines were not growth inhibited by TGF beta and all demonstrated a marked reduction in type II TGF beta receptor mRNA expression and protein abundance by cross-linking, In conclusion, (i) colocalization of both ligand and receptor establishes the existence of potential autocrine and/or paracrine pathways for TGF beta in the normal intestine and (ii) down-regulation of the type II TGF beta receptor occurs in association with cellular transformation and may contribute to intestinal carcinogenesis.