Incubation of neuroblastoma N1E 115 cells with veratrine leads to an apparent reduction in the number of muscarinic acetylcholine receptors assayed by [3H]scopolamine methyl chloride binding. No true down-regulation of the receptors occurs but a component of veratrine with muscarinic receptor affinity, which is not veratridine, enters the intracellular water space during the incubation period and competes with [3H]scopolamine methyl chloride for the muscarinic binding sites in subsequent ligand binding assays unless it is carefully washed away. Treatment of cells with the agonist carbamoylcholine does, however, lead to a true downregulation of muscarinic receptors.