Microglia are the only immunocompetent cells resident in the central nervous system which are capable of protecting the brain from infection and tumors. These resident macrophages possess a vast array of mechanisms for the destruction of bacteria and tumor cells. One of these mechanisms involves the generation of nitric oxide which can kill cells by inhibition of glycolysis, the TCA cycle and DNA synthesis. In this regard, we demonstrate, for the first time, that the inducible form of nitric oxide synthase (NOS) in microglia involves both cytosolic and membrane bound pools. Both pools of NOS were potently and stereo-specifically inhibited by NOS inhibitors. In addition, while these pools were unaffected by Ca2+, they were partially inhibited by calmodulin antagonists. These data would suggest that inducible NOS in lipopolysaccharide (LPS) treated microglia, constitutes two major compartments and may involve a novel isoform which is membrane associated. With regard to the possible physiological relevance for the membrane-bound NOS, we speculate that this presents an efficient means of supplying nitric oxide to the extracellular environment where it could gain rapid access to tumors and bacteria. This would result in inhibition of cellular function in these invading cells while limiting access of nitric oxide to the intracellular environment of microglia where NO could lead to depressed microglial function.