Antisera against L-glutamate decarboxylase (GAD), the synthesizing enzyme of gamma-aminobutyric acid (GABA) were used to locate GABAergic neurons and nerve terminals in the septal complex of the rat by using the peroxidase-antiperoxidase method. Varying densities of immunoreactive terminals were observed in saline-treated rats but nerve cell bodies were only demonstrated after interventricular or intraseptal injections of colchicine. Small and medium-sized GAD-positive neurons were found in lateral septal nuclei, the largest number of these cells being in the pars dorsalis, and in the bed nucleus of the stria terminalis. Several GAD-immunoreactive neurons were located in the medial septal nucleus and the nucleus of the diagonal band of Broca (DB), where the cells were larger in the ventral than dorsal parts of the region. In the medial septal nucleus and in DB the GAD-positive cell bodies were distributed similarly to cholinergic neurons. Large GAD-positive neurons were also found in the septofimbrial nucleus. Intense immunoreactivity in nerve terminals was observed in the lateral septal nucleus, around the island of Calleja magna, between the DB and nucleus accumbens, and in the septofimbrial and triangular septal nuclei. In contrast, the medial septal nucleus, the DB, and the bed nucleus of the stria terminalis only showed weak to moderate immunoreactivity. These results provide direct morphological evidence for the presence of neurons capable of synthesizing GABA in septal nuclei. We suggest that there are two different GABAergic neuronal systems operating in the septum: a population of small cells in the lateral septal nucleus and a group of large cells in the medial septum and DB.