(1) We have investigated the properties of native and haemagglutinin (HA)-tagged neuropeptide Y (NPY) Y(1) receptors after mutation of the palmitoylation site Cys(337) to Ser or Ala. (2) In Chinese hamster ovary cells expressing similar receptor levels, the C337A mutation abolished incorporation of [(3)H]palmitic acid into the HA-Y(1) receptor. (3) Cys(337) substitution did not alter the affinities of Y(1) receptor agonists or antagonists, but it eliminated the ability of guanosine-5'-O-(3-thio)triphosphate (GTPgammaS) to displace [(125)I]PYY-specific binding (compared to approximately 50% inhibition in Y(1) or HA-Y(1) clones). (4) Stimulation of GTPgamma[(35)S] binding by native and HA-Y(1) receptors in standard incubation buffer (100 mM NaCl, 10 micro M GDP) was prevented by Cys(337) mutation. In this assay, the function of Y(1)(C337S) receptors could be partially rescued by reducing the Na(+) concentration, and when overexpressed (B(max): approximately 10 pmol mg(-1)), both HA-Y(1) and HA-Y(1)(C337A) receptors displayed similar responses to NPY and peptide YY (PYY). (5) In stably transfected adenocarcinoma cells expressing Y(1) or Y(1)(C337S) receptors, PYY inhibited anion secretion stimulated by vasoactive intestinal peptide (VIP; measured as short-circuit current, I(SC)) with similar potency (EC(50): 26-53 nM). In contrast to the transient Y(1) receptor-mediated responses observed at maximal PYY concentrations, I(SC) reductions in both Y(1)(C337S) clones were sustained. (6) We conclude that nonpalmitoylation of the Y(1) receptor reduces its coupling efficiency to G proteins, and may also indirectly influence desensitisation processes that depend on the formation of an active agonist-receptor conformation.