The fate of gonadotropin-releasing hormone (GnRH) was examined by a GnRH radioimmunoassay during in vitro incubations of the rat medial basal hypothalamus (MBH). There was a progressive disappearance of exogenous GnRH during MBH incubations. The GnRH degradation could be explained by the release of peptidases from the MBH into the incubation medium. The cytoplasmic marker lactic dehydrogenase (LDH) was also released into the incubation medium. The peptide antibiotic bacitracin produced a dose-dependent inhibition of GnRH degradation during MBH incubations; 1 mM-bacitracin completely inhibited exogenous GnRH degradation during 4-h incubations. Bacitracin also produced dose-dependent increases in the recovery of endogenous GnRH released from the MBH under basal conditions or when stimulated with the depolarizing agent veratrine. Veratrine also was found to decrease the GnRH peptidase activity significantly but not the LDH activity during MBH incubations. The present results indicate that peptidase activity can be an important regulator of endogenous GnRH released from the hypothalamus during in vitro incubations.