The widespread, long sought-after bacterial aerobic phenylalanine/phenylacetate catabolic pathway has recently been elucidated. It proceeds via coenzyme A (CoA) thioesters and involves the epoxidation of the aromatic ring of phenylacetylCoA, subsequent isomerization to an uncommon seven-membered C-O-heterocycle (oxepin-CoA), and non-oxygenolytic ring cleavage. Here we characterize the hydrolytic oxepin-CoA ring cleavage catalyzed by the bifunctional fusion protein PaaZ. The enzyme consists of a C-terminal (R)-specific enoyl-CoA hydratase domain (formerly MaoC) that cleaves the ring and produces a highly reactive aldehyde and an N-terminal NADP ؉ -dependent aldehyde dehydrogenase domain that oxidizes the aldehyde to 3-oxo-5,6-dehydrosuberyl-CoA. In many phenylacetate-utilizing bacteria, the genes for the pathway exist in a cluster that contains an NAD ؉ -dependent aldehyde dehydrogenase in place of PaaZ, whereas the aldehyde-producing hydratase is encoded outside of the cluster. If not oxidized immediately, the reactive aldehyde condenses intramolecularly to a stable cyclic derivative that is largely prevented by PaaZ fusion in vivo. Interestingly, the derivative likely serves as the starting material for the synthesis of antibiotics (e.g. tropodithietic acid) and other tropone/tropolone related compounds as well as for -cycloheptyl fatty acids. Apparently, bacteria made a virtue out of the necessity of disposing the dead-end product with ring hydrolysis as a metabolic branching point.Aromatics like phenylacetic acid constitute the second most abundant class of natural organic compounds that serve as substrates mainly for microorganisms. Oxygen availability is key to how bacteria utilize such inert substrates (1). Under aerobic conditions oxygen is used to hydroxylate and cleave the ring (2, 3). In contrast, under anaerobic conditions the inert substrates become activated to CoA-thioesters followed by shortening of the side chain and energy-driven ring reduction; furthermore, ring cleavage occurs hydrolytically rather than by oxygenation. This strategy also applies to anaerobic phenylacetate catabolism (Ref. 4 and literature cited therein) (Fig. 1A).Phenylacetate (I) is a key intermediate in the degradation of various substrates like phenylalanine, lignin-related aromatic compounds, or environmental contaminants (5, 6). The first studies from more than 20 years ago reported the induction of a phenylacetate-CoA ligase under aerobic conditions in Pseudomonas putida, suggesting an unconventional strategy for aerobic phenylacetic acid (Paa) 2 degradation (7, 8). A total of 14 genes in 3 transcriptional units were identified in the corresponding paa gene cluster (9). However, the underlying biochemical conversions remained obscure until they were recently elucidated in Escherichia coli K12 and Pseudomonas sp. strain Y2 (10). This novel metabolic strategy involves the usage of oxygen as well as CoA-thioester intermediates throughout the pathway, hence, showing typical features of aerobic as well as anaerobic strategies...