Transposon Tn5 employs a unique means of self-regulation by expressing a truncated version of the transposase enzyme that acts as an inhibitor. The inhibitor protein differs from the full-length transposase only by the absence of the first 55 N-terminal amino acid residues. It contains the catalytic active site of transposase and a C-terminal domain involved in protein-protein interactions. The three-dimensional structure of Tn5 inhibitor determined to 2.9-Å resolution is reported here. A portion of the protein fold of the catalytic core domain is similar to the folds of human immunodeficiency virus-1 integrase, avian sarcoma virus integrase, and bacteriophage Mu transposase. The Tn5 inhibitor contains an insertion that extends the -sheet of the catalytic core from 5 to 9 strands. All three of the conserved residues that make up the "DDE" motif of the active site are visible in the structure. An arginine residue that is strictly conserved among the IS4 family of bacterial transposases is present at the center of the active site, suggesting a catalytic motif of "DDRE." A novel C-terminal domain forms a dimer interface across a crystallographic 2-fold axis. Although this dimer represents the structure of the inhibited complex, it provides insight into the structure of the synaptic complex.Transposition is a process in which a defined DNA sequence, called a transposable element, moves from one location to a second location on the same or another chromosome. Transposable elements occur widely in nature and include the simple insertion sequences or composite transposons of bacteria, certain bacteriophages, transposons, and retrotransposons of eukaryotic cells and retroviruses such as HIV-1.1 Originally described by McClintock (1) in a series of elegant experiments of controlling elements in maize, transposons have been found in all phyla studied to date, including humans. These mobile genetic elements are likely to have played a role in genome evolution and continue to shuffle antibiotic resistance traits among bacteria today (for a general review, see Ref.2). In eukaryotic species, transposons are not only numerous but also very promiscuous and are known to cause chromosome mutations. Also, the DNA cleavage reactions involved in immunoglobulin gene rearrangement have been shown to occur via a transposition mechanism (3).Achieving a molecular and structural understanding of transposition has been a formidable challenge in part because of the complexity of the process. Transposition is initiated by the binding of a transposable element-encoded protein called a transposase to specific DNA sequences located at or near the ends of the element. Next, the DNA-bound transposase oligomerizes to form a synaptic nucleoprotein complex. Thereafter cleavage of one or both strands at the transposon ends occurs where the exact cleavage sites are a property of the specific element (4, 5). The initial strand cleavage reaction is believed to occur via nucleophilic attack of an activated water molecule on the phosphodiester bond at th...