M. tuberculosis (Mtb) infection is an ongoing global health crisis that kills 2 million people each year1. Although the structurally diverse lipids of the Mtb cell envelope each have nonredundant roles in virulence or persistence2-7, the molecular mechanisms regulating cell envelope composition in Mtb are undefined. In higher eukaryotes, membrane composition is controlled by site two protease (S2P) mediated cleavage of sterol regulatory element binding proteins (SREBPs)8,9, membrane bound transcription factors that control lipid biosynthesis. S2P is the founding member of a widely distributed family of a membrane metalloproteases10,11 that cleave substrate proteins within transmembrane segments12. Here we show that a previously uncharacterized Mtb S2P homolog (Rv2869c) regulates cell envelope composition, in vivo growth, and in vivo persistence of Mtb. These results establish that regulated intramembrane proteolysis (RIP) is a conserved mechanism controlling membrane composition in prokaryotes and establish RIP as a proximal regulator of cell envelope virulence determinants in M. tuberculosis.Despite the well established role of S2P in lipid metabolism in higher eukaryotes, prokaryotic S2P family members characterized to date control sporulation in Bacillus subtilis (SpoIVFB) 13,14, the periplasmic stress response in E. coli (YaeL) 15,16, and cell polarity 17. To examine the physiologic role of RIP in Mtb, we searched the Mtb genome for Site two protease homologs with the signature HExxH zinc chelation active site motif and the LDG C terminal motif both present within predicted transmembrane domains. Through this approach, we identified a S2P homologue (Rv2869c) in the Mtb chromosome which has not been characterized previously. Figure 1a shows the hydropathy plots of human S2P, YaeL and Rv2869c. Although the amino acid identities between the three proteins are low (16-22%), the conserved HExxH and F/LDG motifs and transmembrane topology establish Rv2869c as an intramembrane cleaving protease (iCLIP)12.To characterize the function of Rv2869c in mycobacteria, we deleted this gene from the chromosomes of M. bovis BCG and M. tuberculosis Erdman by specialized transduction 18. Figure 1b shows the genomic location of Rv2869c between dxr and gcpE, two genes in the non-mevalonate pathway of isoprenoid biosynthesis 19,20. Southern blotting (Figure 1c) confirmed successful replacement of Rv2869c with a Hygromycin resistance cassette in both BCG and M. tuberculosis, demonstrating that, in When grown on solid media, the Rv2869c null mutant displayed altered colony morphology. In pathogenic mycobacteria, the colonial and microscopic morphology of cording has long been associated with virulence and is dependent on multiple cell envelope lipids 2,5. Both the BCG and Mtb ΔRv2869c strains lacked cording, as measured by colonial morphology ( Figure 2A) and by microscopic examination of Auramine-Rhodamine stained bacilli ( Figure 2B). Wild type cording was restored to the ΔRv2869c strain by a wild type copy of Rv2869c, ...