Expression of nuclear angiotensin II type 1 (AT₁) receptors in rat kidney provides further support for the concept of an intracellular renin-angiotensin system (_iRAS). Thus, we examined the cellular distribution of renal Ang II receptors in sheep to determine the existence and functional roles of intracellular Ang receptors in higher order species. Receptor binding was performed using the non-selective Ang II antagonist ¹²⁵I-[Sar¹,Thr⁸]-Ang II (¹²⁵I-Sarthran) with the AT₁ antagonist Losartan (LOS) or the AT₂ antagonist PD123319 (PD) in isolated nuclei (NUC) and plasma membrane (PM) fractions obtained by differential centrifugation or density gradient separation. In both fetal and adult sheep kidney, PD competed for the majority of cortical NUC (70%) and PM (80%) sites while LOS competition predominated in medullary NUC (75%) and PM (70%). Immunodetection with an AT₂ antibody revealed a single ~42 kDa band in both NUC and PM extracts, suggesting a mature molecular form of the NUC receptor. Autoradiography for receptor subtypes localized AT₂ in tubulointerstitium, AT₁ in medulla and vasa recta, and both AT₁ and AT₂ in glomeruli. Treatment of NUC with the fluorescent NO detector DAF showed increased NO production with Ang II (1 nM), which was abolished by PD and L-NAME, but not LOS. Our studies demonstrate Ang II receptor subtypes are differentially expressed in ovine kidney, while nuclear AT₂ receptors are functionally linked to NO production. These findings provide further evidence of a functional _iRAS within the kidney, which may represent a therapeutic target for the regulation of blood pressure.