1. The binding of oxotremorine-M to M1 muscarine receptors was examined by measuring competition between the agonist and 3H-pirenzepine, using rabbit hippocampal membranes suspended in 20 mM Tris buffer containing 1 mM Mn2+. 2. Both ligands interacted with a single class of receptors. The receptors could assume two affinity states for oxotremorine-M, with equal numbers of high-affinity (KH) and low-affinity (KL) sites. 3. KH interconverted reversibly to KL in the absence of divalent cations and interconverted reversibly to a state similar to KL in the presence of guanyl 5'-yl imidodiphosphate. 4. The results are compatible with a model in which a pair of receptor molecules can be stabilized by a guanine nucleotide-binding "G protein" and have one site each of KH and KL affinity.