Background: Ppz1 orthologs, novel family of phosphatases, have a unique N-terminal non-catalytic domain. Results: Ppz1 ortholog from halotolerant yeast Debaryomyces hansenii plays important role in salt tolerance, cell wall integrity, and cell growth through distinct mechanism. Conclusion: Short serine arginine-rich motif in non-catalytic domain is essential for its role in salt tolerance. Significance: This motif is conserved among orthologs and functionally important.