Circulating peptide hormones and growth factors interact with cell surface receptors to initiate specific cellular responses. These complexes can consist of a simple association between two proteins or a more elaborate association of multiple proteins. We describe the functional expression of ligands and corresponding receptors in a microbial system useful for the rapid dissection of these important protein interactions. GH or PRL and extracellular domains of their respective receptors were functionally expressed as fusion proteins in an extended two-hybrid protein-protein interaction system. Reversible and specific ligand-receptor interactions were demonstrated by concurrent expression of free ligand peptides (GH or PRL) as binding competitors. The versatility established by expressing three heterologous proteins allowed for the investigation of higher order structures. Ligand-dependent GH receptor dimerization was demonstrated but PRL receptor dimerization was not observed in an analogous assay, suggesting that these related growth factors may not engage receptors in a similar manner. Additionally, significant association of GH receptors was observed in the absence of ligand, suggesting that there may be substantial avidity between these receptor proteins before ligand binding. Ligand-dependent and ligand-independent receptor dimerization was demonstrated by vascular endothelial growth factor and receptor proteins in similar assays. These findings indicate that extracellular protein interactions such as ligand-receptor association, as well as the formation of higher order protein structures important for the activation of hematopoietic receptors, can be rapidly investigated in this microbial expression system.