phosphoinositide ͉ PI(4,5)P2 ͉ voltage sensor ͉ PI(3,4,5)P3 ͉ substrate specificity P hosphatidylinositol (PI) lipids serve structural roles in biological membranes as well as playing important roles as signaling molecules. Phosphatidylinositol 4,5-bisphosphate [PI(4,5)P 2 ] regulates cell motility, cell shape, vesicle turnover, and membrane excitability either through directly binding to target proteins (1-3) or by mediating calcium signaling via its cleavage by phospholipase C into inositol 1,4,5-trisphosphate and diacylglycerol (4). Phosphatidylinositol 3,4,5-trisphosphate [PI(3,4,5)P 3 ] regulates cell proliferation, survival, and morphology (5). To exert physiological roles, the concentrations of these phosphoinositides in membranes are strictly regulated by multiple kinases and phosphatases. Recently, we identified a phosphoinositide phosphatase, Ciona intestinalis voltage sensor-containing phosphatase (Ci-VSP), consisting of an ion channel-like transmembrane domain followed by a phosphatase domain which shares sequence identity to the phosphatase and tensin homolog deleted on chromosome 10q23 (PTEN). PTEN is a well characterized PI phosphatase that dephosphorylates the phosphate on the 3Ј position of PI(3,4,5)P 3 , resulting in generation of PI(4,5)P 2 (6, 7). Ci-VSP shares overlapping substrate specificity with PTEN in that it was also shown to dephosphorylate PI(3,4,5)P 3 (8).A voltage-gated ion channel commonly consists of two parts: the N terminus (S1 to S4) functions as a voltage sensor while the C terminus (S5 to S6) functions as an ion-permeable pore (9). The transmembrane region of Ci-VSP shows significant sequence homology to the voltage-sensor domains of the conventional voltage-gated channels but does not contain the pore domain. Basic amino acids spaced periodically in the fourth transmembrane segments (S4) are known to be essential for sensing changes in the membrane potential in voltage-gated ion channels (8,9). This pattern of basic amino acids is also conserved in the fourth transmembrane segment (S4) of Ci-VSP. Indeed, Xenopus oocytes injected with Ci-VSP cRNA showed transient ''gating'' currents as the readouts of the movement of S4 across the membrane in response to voltage change, demonstrating that the N terminus of Ci-VSP functions as a voltage sensor (8).We hypothesized that the voltage-sensor domain of Ci-VSP could potentially regulate the activity of the phosphatase domain. Along these lines we were able to demonstrate that the activity of the PI(4,5)P 2 -sensitive potassium channel coexpressed with Ci-VSP increases at hyperpolarization and decreases at depolarization (8). This result cannot be reconciled with the known enzymatic activity of Ci-VSP, which would result in increased PI(4,5)P 2 levels, thereby resulting only in activation of the potassium channel. In addition, confocal imaging of pleckstrin homology domains (PHDs) fused to GFP as detectors of PI(4,5)P 2 and PI(3,4,5)P 3 , as well as electrophysiological measurements of potassium currents in Xenopus oocytes, showed th...