This study demonstrates the presence of both atrial natriuretic peptide (ANP) precursor and ANP transcripts in the rat olfactory bulb (OB), a key brain structure involved in the generation of olfaction-dependent behavior. In addition to synthesizing ANP, the OB contains ANP-transducing receptors coupled to the guanylate cyclase system but it is devoid of ANP "clearance receptors." The characterization of biologically active ANP receptors and the evidence for in situ ANP synthesis in this region of the CNS adds credence to the hypothesis that the peptide plays a putative role in olfaction.