The yeast vacuole, which is equivalent to the lysosome of higher eukar
yotes, is one of the best characterized degradative organelles. This r
eview describes the biosynthesis and function of yeast vacuolar protea
ses. Most of these enzymes are delivered to the vacuole via the early
compartments of the secretory pathway and the endosome, while one of t
hem is directly imported from the cytoplasm. The proteases are synthes
ized as precursors which undergo many post-translational modifications
before the final active form is generated. Proteolytic activation by
removal of propeptides is performed by proteinase A and/or proteinase
B in an intricate cascade-like fashion. Recent developments in the ana
lysis of the functions of vacuolar proteolysis are described. Substrat
es of the vacuolar proteases are mostly imported via endocytosis or au
tophagocytosis, and vacuolar proteolysis appears to be mainly importan
t under nutritional stress conditions and sporulation.