Phosphatidylinositol-specific phospholipase Cs (PLCs) are a family of phosphodiesterases that catalyze the cleavage of the P-O bond via transesterification using the internal hydroxyl group of the substrate as a nucleophile, generating the five-membered cyclic inositol phosphate as an intermediate or product. To better understand the role of calcium in the catalytic mechanism of PLCs, we have determined the X-ray crystal structure of an engineered PLC enzyme from Bacillus thurigiensis to 2.1 Å resolution. The active site of this enzyme has been altered by substituting the catalytic arginine with an aspartate at position 69 (R69D). This single-amino acid substitution converted a metal-independent, low-molecular weight enzyme into a metal ion-dependent bacterial PLC with an active site architecture similar to that of the larger metal ion-dependent mammalian PLC. The Ca 2+ ion shows a distorted square planar geometry in the active site that allows for efficient substrate binding and transition state stabilization during catalysis. Additional changes in the positions of the catalytic general acid/general base (GA/GB) were also observed, indicating the interrelation of the intricate hydrogen bonding network involved in stabilizing the active site amino acids. The functional information provided by this X-ray structure now allows for a better understanding of the catalytic mechanism, including stereochemical effects and substrate interactions, which facilitates better inhibitor design and sheds light on the possibilities of understanding how protein evolution might have occurred across this enzyme family.Phosphatidylinositol-specific phospholipase C (PI-PLC) 1 enzymes (EC 3.1.4.11) are important enzymes involved in various cellular signaling cascades that originate from the binding of hormones, neurotransmitters, and growth factors to specific extracellular receptors. Regulation of this class of enzymes has recently been reviewed (1). These phosphodiesterase enzymes catalyze the cleavage of the P-O bond via transesterification using the axial hydroxyl group on the inositol ring as a nucleophile generating a fivemembered cyclic phosphate as an intermediate or as a final product as shown in Scheme 1 (1-5). Schematically, the reaction mechanism appears to be straightforward, requiring a general acid-base system to facilitate proton transfer events and a positively charged species central to the acid-base pair to promote formation of the transition state phosphate species. However, the structural effects on kinetic rates of PI-PLCs are not easily understood for a number of reasons, demonstrated by the variability in releasing the cyclic or linear product, which is known to occur for bacterial PI-PLC enzymes as well as mammalian isozymes that release different amounts of cyclic phosphate upon their stimulation with an agonist-receptor mechanism (6). Mammalian PIPLCs are a diverse class of enzymes and represent a complex organization of structural domains, such as the pleckstrin homology (PH), EF-hand, C2, and con...