Differentiation of hematopoietic cells is known to be accompanied by profound changes in acetylcholinesterase (AChE) enzyme activity, yet the basic mechanisms underlying this developmental regulation remain unknown, We initiated a series of experiments to examine the molecular mechanisms involved in regulating AChE expression during hematopoiesis, Differentiation of murine erythroleukemia (MEL) cells using dimethyl sulfoxide resulted in a 5- and 10-fold increase in intracellular and secreted AChE enzyme activity, respectively, Interestingly, these increases resulted from a preferential induction of the globular molecular form G(1) and a slight increase in G(4) instead of an increase in the levels of the G(2) membrane-bound form, a molecular form expressed in mature erythrocytes, Concomitantly, expression of the two predominant AChE transcripts (R and T, for read-through and tail, respectively) in MEL cells was induced to a similar extent with differentiation. Nuclear run-on assays performed with nuclei isolated from induced versus uninduced MEL cells revealed that in contrast to the large increases seen in the transcription of the beta-globin gene, the transcriptional activity of the AChE gene remained largely unaffected after differentiation. Determination of the half-lives of the R and T transcripts demonstrated that they both exhibited an increase in stability in induced MEL cells. Taken together, results from these studies indicate that posttranscriptional regulatory mechanisms account for the increased expression of AChE in differentiated hematopoietic cells.