Chronic dorsal periaqueductal grey matter electrodes were implanted into adult rats under pentobarbitone anaesthesia. Stimulating these electrodes (25-300 microA) produced behavioural analgesia in 23 of 44 rats tested. In rats given the opiate antagonist naloxone attenuation of this analgesia was seen. In 14 rats displaying behavioural analgesia to periaqueductal grey matter stimulation acute electrophysiological experiments were performed under urethane anaesthesia. Microelectrode recordings were made from neurones, excited by noxious heat or pinch applied to the limbs and tail, and located in the reticular formation of the caudal medulla. Stimulation of the periaqueductal grey matter at an intensity sufficient to produce analgesia in the conscious animal produced direct inhibition of the firing of 62% of neurones tested, excited 23%, had no effect on 14% and attenuated the nociceptive responses of 66%. The inhibitions were characteristically long. Local application of naloxone by microiontophoresis attenuated these long inhibitions in 11 out of 16 neurons tested. Immunohistochemical localization of beta-endorphin containing structures in the vicinity of stimulating and recording sites suggested that the naloxone sensitive inhibition of nociceptive neuronal responses in caudal medulla reticular formation may be due to activation of beta-endorphin fibres descending through the periaqueductal area to the caudal medulla.