Caveolae are specialized invaginated cell surface microdomains of unde
fined function. A cell-free system that reconstituted fission of caveo
lae from lung endothelial plasma membranes was developed. Addition of
cytosol and the hydrolysis of guanosine triphosphate (GTP) induced cav
eolar fission. The budded caveolae were isolated as vesicles rich in c
aveolin and the sialoglycolipid G(M1) but not glycosylphosphatidylinos
itol (GPI)-anchored proteins. These vesicles contained the molecular m
achinery for endocytosis and transcytosis. In permeabilized endothelia
l cells, GTP stimulated, whereas GTP gamma S prevented, caveolar buddi
ng and endocytosis of the cholera toxin B chain to endosomes. Thus, ca
veolae may bud to form discrete carrier vesicles that participate in m
embrane trafficking.