GABA(A) receptors (GABARs) have long been the focus for acute alcohol actions with evidence for behaviorally relevant low millimolar alcohol actions on tonic GABA currents and extrasynaptic alpha 4/6, delta, and beta 3 subunit-containing GABARs. Using recombinant expression in oocytes combined with two electrode voltage clamp, we show with chimeric beta 2/beta 3 subunits that differences in alcohol sensitivity among beta subunits are determined by the extracellular N-terminal part of the protein. Furthermore, by using point mutations, we show that the beta 3 alcohol selectivity is determined by a single amino acid residue in the N-terminus that differs between GABAR beta subunits (beta 3Y66, beta 2A66, beta 1S66). The beta 3Y66 residue is located in a region called "loop D" which in gamma subunits contributes to the imidazobenzodiazepine (iBZ) binding site at the classical alpha+gamma 2- subunit interface. In structural homology models beta 3Y66 is the equivalent of gamma 2T81 which is one of three critical residues lining the benzodiazepine binding site in the gamma 2 subunit loop D, opposite to the "100H/R-site" benzodiazepine binding residue in GABAR alpha subunits. We have shown that the alpha 6R100Q mutation at this site leads to increased alcohol-induced motor in-coordination in alcohol non-tolerant rats carrying the alpha 6R100Q mutated allele. Based on the identification of these two amino acid residues alpha 6R100 and beta 66 we propose a model in which beta 3 and delta containing GABA receptors contain a unique ethanol site at the alpha 4/6+beta 3- subunit interface. This site is homologous to the classical benzodiazepine binding site and we propose that it not only binds ethanol at relevant concentrations (EC50-17 mM), but also has high affinity for a few selected benzodiazepine site ligands including alcohol antagonistic iBZs (Ro15-4513, RY023, RY024, RY80) which have in common a large moiety at the C7 position of the benzodiazepine ring. We suggest that large moieties at the C7-BZ ring compete with alcohol for its binding pocket at a alpha 4/6+beta 3- EtOH/Ro15-4513 site. This model reconciles many years of alcohol research on GABARs and provides a plausible explanation for the competitive relationship between ethanol and iBZ alcohol antagonists in which bulky moieties at the C7 position compete with ethanol for its binding site. We conclude with a critical discussion to suggest that much of the controversy surrounding this issue might be due to fundamental species differences in alcohol and alcohol antagonist responses in rats and mice.