Prostaglandin E1 (PGE1) hyperpolarized the smooth muscle cells of guinea-pig ureter in normal Krebs solution and was without effect on ureters depolarized in KCl Krebs, PGE1 inhibited both electrically induced contractions and K+-induced contractures of the ureters. Conditions that favored greater tension development by the ureters, namely, high [K+] or high [Ca-2+] reduced the inhibitory effects of PGE1 on the K+-induced contractures. Depolarization of guinea-pig ureter with KCl Krebs led to an increase in radio-calcium content of the tissue over a 30 min loading period. This increase in the tissue's radio-calcium content was further increased by PGE1 but not by theophylline, PGE1 was found to have no effect on either total calcium content or the calcium efflux from the tissue. It is suggested that PGE1 exerts its inhibitory action by increasing calcium sequestration at the inner surface of the cell membrane.