We have studied the induction of peroxisomes in the methylotrophic yeast Candida boidinii by D-alanine and oleic acid. The organism was able to utilize each of these compounds as the sole carbon source and grew with growth rates of mu = 0.20 h-1 (on D-alanine) or mu = 0.43 h-1 (on oleic acid). Growth was associated with the development of many peroxisomes in the cells. On D-alanine a cluster of tightly interwoven organelles was observed which made up 6.3% of the cytoplasmic volume and were characterized by the presence of D-amino acid oxidase and catalase. On oleic acid rounded to elongated peroxisomes were dominant which were scattered throughout the cytoplasm. These organelles contained increased levels of beta-oxidation enzymes; their relative volume fraction amounted 12.8% of the cytoplasmic volume.