Recent reports of the presence of components of the renin-angiotensin system (RAS) in the mammalian ovary suggest that angiotensin II (Ang II) may be elaborated by this structure. In this study, angiotensin-converting enzyme (ACE), a key enzyme in the synthesis of Ang II, was identified enzymatically and localized to the germinal epithelium surrounding corpora lutea, granulosa cells of some--but not all--follicles, and blood vessels of the rat ovary using a potent and specific radiolabeled ACE inhibitor, 125I-351A. Follicles that bound 125I-351A also contained Ang II-receptor binding sites. Co-localization of RAS components to the follicular granulosa cells and the ability of Ang II to promote estrogen formation suggest that the ovarian RAS may promote follicular development and assertion of dominance.