Endocytosis and exocytosis were investigated in the synaptic terminal of retinal bipolar cells by monitoring the uptake and loss of the fluorescent dye FM1-43. Depolarization in the presence of Ca2+ stimulated a continuous cycle of exocytosis and endocytosis that was approximately balanced at rates up to 3800 vesicles per s. Vesicles became available for exocytosis within 1 min of endocytosis, and about 700,000 releasable vesicles were specifically localized to a region within 2 microm of the plasma membrane. Release of caged Ca2+ using NP-EGTA while simultaneously monitoring cytosolic Ca2+ with Fura-2 indicated that continuous exocytosis was stimulated by sub-micromolar levels of Ca2+. It has been suggested that the ribbon synapse of bipolar cells only supports transient exocytosis, but our results demonstrate that this synapse is specialized for the continuous secretion of neurotransmitter.