The occurrence of a hitherto unknown pathway involving the action of two enzymes, a nitrile hydratase and an amidase for the biosynthesis of indole-3-acetic acid was discovered in phytopathogenic bacteria Agrobacterium tumefaciens and in leguminous bacteria Rhizobium. The nitrile hydratase acting on indole-3-acetonitrile was purified to homogeneity through only two steps from the cell-free extract ofA. tumefaciens. The molecular mass of the purified enzyme estimated by HPLC was about 102 kDa, and the enzyme consisted of four subunits identical in molecular mass. The enzyme exhibited a broad absorption spectrum in the visible range with absorption maxima at 408 nm and 705 nm, and it contained cobalt and iron. The enzyme stoichiometrically catalyzed the hydration of indole-3-acetonitrile into indole-3-acetamide with a specific activity of 13.7 ,umol per min per mg and a Km of 7.9 ,uM.Indole-3-acetic acid (IAA) is a well-known phytohormone and three biosynthetic routes involving indole-3-pyruvate, tryptamine, or indole-3-acetonitrile have been studied in higher plants (1, 2). In the indole-3-acetonitrile route, the nitrile generated from indole-3-acetaldoxime, naturally occurring in plants (3), by indoleacetaldoxime dehydratase (EC 4.2.1.29) (4) or from indole-3-methylglucosinolate by myrosinase (EC 3.2.3.1) (5), is converted into IAA by nitrilase (EC 3.5.5.1) in Brassicaceae (cabbage group and radish), Gramineae (grasses), and Musaceae (banana family) (6, 7). While studies on auxin have been made for >100 years (8), none of the genes encoding IAA-forming enzymes in the indole-3-pyruvate or the tryptamine route have been cloned yet, although cDNA cloning of nitrilases fromArabidopsis thaliana (9-11) has been reported.Microbial production of plant hormones such as IAA and cytokinin seems to be essential for the virulence of bacteria in their host plants (12). Agrobacterium tumefaciens (Ag. tumefaciens) can infect wound sites on a wide range of dicotyledonous plants and cause the formation of crown gall tumors by transfer of the transferred DNA (T-DNA) region in the Ti plasmid from the bacteria into plant cells. The T-DNA genes tms-1 and tms-2 encode tryptophan 2-monooxygenase (EC 1.13.12.3) and indoleacetamide hydrolase, respectively (13); IAA is produced from tryptophan by the sequential action of these two enzymes. A similar situation in the genes responsible for IAA synthesis was observed in Pseudomonas savastanoi (Ps. savastanoi), which induced tissue proliferation in olive and oleander plants (14).In studying nitrile metabolism, we have found that the microbial degradation of nitriles can proceed by two enzymatic pathways (15). In one, a nitrilase catalyzes the direct conversion of nitriles into the corresponding acids plus ammonia (Eq. 1) (16). Yamada and coworkers (17) in our laboratory have purified and characterized such a nitrilase from Alcaligenes faecalis acting on indole-3-acetonitrile, and we have cloned (18) the gene. In the other pathway, a nitrile hydratase catalyzes the hydration of nitrile...