A full-length cDNA encoding the putative hepatic glycogen-binding (G,) subunit of protein phosphatase-1 (PPl) was isolated from a rat liver library. The deduced amino acid sequence (284 residues, 32.6 kDa) was 23% identical (39% similar) to the N-terminal region of the glycogen-binding (G,) subunit of PPl from striated muscle. The similarities between GM and G, were most striking between residues 63-f&& 16166 and 186-227 of human G, (-40% identity), nearly all the identities with the putative yeast homologue GACl being located between 144-166 and 186-227. The cDNA was expressed in E. coli, and the expressed protein transformed the properties of PPl to those characteristic of the hepatic glycogen-associated enzyme. These experiments establish that the cloned protein is G,.