Two opposing models have been put forward to explain how the g-tubulin ring complex (g-TuRC) induces microtubule (MT) nucleation. The protofilament model proposes that the g-TuRC induces nucleation as a partially or completely straightened protofilament that becomes incorporated longitudinally into the wall of the nascent MT, while the template model predicts that the g-TuRC acts as a helical template that constitutes the base of the newly-formed polymer. We sought to distinguish between these two models by performing high-resolution structural and immunolocalization studies. We found that g-TuRC components localize to a narrow zone at the extreme minus end of the MT and that these ends terminate in a pointed cap. Together, these results strongly favor the template model of nucleation.