Opportunistic pathogens exploit diverse strategies to sabotage host defenses. Pseudomonas aeruginosa secretes the CFTR inhibitory factor Cif and thus triggers loss of CFTR, an ion channel required for airway mucociliary defense. However, Cif's mechanism of action has remained unclear. It catalyzes epoxide hydrolysis, but there is no known role for natural epoxides in CFTR regulation. Here, we show that Cif's hydrolase activity is strictly required for its effects on CFTR. We also uncover a small-molecule inhibitor that protects this key component of the mucociliary defense system. Our results provide a basis for targeting Cif's distinctive virulence chemistry and suggest an unanticipated role of physiological epoxides in intracellular protein trafficking.