To determine whether rat retinal photoreceptor cells produce inhibin, a molecule closely related to activin, a multifunctional growth factor in the transforming growth factor beta superfamily (TGF beta), we have conducted immunohistochemistry using specific antibodies for inhibin which were raised against a synthetic N-terminal fragment of the alpha-subunit of inhibin. The mature inhibin molecule was identified at both the inner and outer segments of photoreceptor cells. To determine if messenger RNA for the alpha-subunit of inhibin is expressed in the retinal cells, both in situ hybridization with a specific probe and the reverse transcription-polymerase chain reaction (RT-PCR) technique with primers specific for the alpha-subunit of inhibin were used. Messenger RNA expression of the alpha-subunit of inhibin was detected by RT-PCR and localized in the photoreceptor cells as determined by in situ hybridization. In addition, the identity of the cDNA product of RT-PCR was verified with Southern analysis and DNA sequencing. The localization of mature inhibin protein and its corresponding message to photoreceptor cells suggest that inhibin may have a paracrine function in the retina, perhaps in the photoreceptor cells themselves.