In the DnaK (Hsp70) molecular chaperone system of Escherichia coli, the substrate polypeptide is fed into the chaperone cycle by association with the fast-binding, ATP-liganded form of the DnaK. The substrate binding properties of DnaK are controlled by its two cochaperones DnaJ (Hsp40) and GrpE. DnaJ stimulates the hydrolysis of DnaK-bound ATP, and GrpE accelerates ADP/ATP exchange. DnaJ has been described as targeting the substrate to DnaK, a concept that has remained rather obscure. Based on binding experiments with peptides and polypeptides we propose here a novel mechanism for the targeting action of DnaJ: ATP⅐DnaK and DnaJ with its substrate-binding domain bind to different segments of one and the same polypeptide chain forming (ATP⅐DnaK) m ⅐substrate⅐DnaJ n complexes; in these ternary complexes efficient cis-interaction of the J-domain of DnaJ with DnaK is favored by their propinquity and triggers the hydrolysis of DnaK-bound ATP, converting DnaK to its ADP-liganded high affinity state and thus locking it onto the substrate polypeptide. Hsp70 1 chaperones assist a variety of protein folding processes in the cell, including folding of nascent polypeptide chains, rescue of misfolded proteins, translocation of polypeptide chains through membranes, assembly and disassembly of protein complexes, and control of the biological activity of folded regulatory proteins (for a review, see Ref. 1). The chaperone action of DnaK, an Hsp70 homolog in Escherichia coli, is driven by the hydrolysis of ATP. DnaJ, an Hsp40 homolog, triggers the hydrolysis of DnaK-bound ATP and thus converts DnaK from the ATP-liganded low affinity T state to its ADPliganded high affinity R state (2-6). The stimulation of the ATPase activity requires the conserved J-domain of DnaJ (residues 2-78 in E. coli DnaJ; Refs. 2, 4, and 7) and the adjacent G/F region (2). DnaJ itself is also capable of associating with unfolded substrates and preventing aggregation (8 -11), qualifying DnaJ as a chaperone on its own. Binding of substrates requires the zinc finger-like region and the COOH-terminal region of DnaJ (12). Only full-length DnaJ, comprising both the J-domain and the substrate-binding domain, is effective, together with DnaK and GrpE, in refolding denatured firefly luciferase (12, 13). Based on these findings, it has been proposed that substrates first associate with DnaJ, which then transfers them to the substrate-binding site of Hsp70 (6,10,11,14). The function of DnaJ has also been assumed to include a "catalytic activation" of DnaK for trapping target sequences (4, 15). A recent study has shown that DnaJ shares most binding motifs with DnaK, which also seems to qualify DnaJ as a targeting partner for the chaperone DnaK (16).However, no direct experimental evidence has been reported for substrate transfer from DnaJ to DnaK, and the concept of a targeting action of DnaJ has as yet remained obscure (16). The catalytic activation of DnaK by DnaJ (4, 15) has not remained undisputed (17). Recent work (6) has shown that the stimulatory effect of Dn...