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The tissue is made of three types of cells: the olfactory receptor neurons which transduce the odor to electrical signals, the supporting cells which protect the neurons and secrete mucus, and the basal cells which are a type of stem cell that differentiate into olfactory receptor neurons to replace dead receptor neurons. The olfactory epithelium is divided into four zones from ventral to dorsal. Each olfactory receptor is expressed throughout one zone.

The olfactory epithelium can be damaged by inhalation of toxic fumes, physical injury to the interior of the nose, and possibly by the use of some nasal sprays. Because of its regenerative capacity, damage to the olfactory epithelium can be temporary but in extreme cases, injury can be permanent, leading to anosmia.