The kinetics of PI-PLC␥1 toward a water-soluble substrate (inositol 1,2-cyclic phosphate, cIP) and phosphatidylinositol (PI) in detergent mixed micelles were monitored by 31 P NMR spectroscopy. That cIP is also a substrate (K m ؍ ϳ15 mM) implies a two-step mechanism (intramolecular phosphotransferase reaction to form cIP followed by cyclic phosphodiesterase activity to form inositol-1-phosphate (I-1-P)). PI is cleaved by PI-PLC␥1 to form cIP and I-1-P with the enzyme specific activity and ratio of products (cIP/I-1-P) regulated by assay temperature, pH, Ca 2؉ , and other amphiphilic additives. Cleavage of both cIP and PI by the enzyme is optimal at pH 5. The effect of Ca 2؉ on PI-PLC␥1 activity is unique compared with other isozymes enzymes: Ca 2؉ is necessary for the activity and low Ca 2؉ activates the enzyme; however, high Ca 2؉ inhibits PI-PLC␥1 hydrolysis of phosphoinositides (but not cIP) with the extent of inhibition dependent on pH, substrate identity (cIP or PI), substrate presentation (e.g. detergent matrix), and substrate surface concentration. This inhibition of PI-PLC␥1 by high Ca 2؉ is proposed to derive from the divalent metal ion-inducing clustering of the PI and reducing its accessibility to the enzyme. Amphiphilic additives such as phosphatidic acid, fatty acid, and sodium dodecylsulfate enhance PI cleavage in micelles at pH 7.5 but not at pH 5.0; they have no effect on cIP hydrolysis at either pH value. These different kinetic patterns are used to propose a model for regulation of the enzyme. A key hypothesis is that there is a pH-dependent conformational change in the enzyme that controls accessibility of the active site to both water-soluble cIP and interfacially organized PI. The low activity enzyme at pH 7.5 can be activated by PA (or phosphorylation by tyrosine kinase). However, this activation requires lipophilic substrate (PI) present because cIP hydrolysis is not enhanced in the presence of PA.Mammalian phosphoinositide-specific phospholipase C (PI-PLC) 1 enzymes are key components of PI-mediated signaling cascades in vivo (1, 2). These enzymes are subdivided into three main classes, PI-PLC-, -␥, and -␦, that share three conserved regions (3): (i) an N-terminal pleckstrin homology (PH) domain (these domains often have a high affinity for the phosphoinositide PIP 2 ), (ii) the X domain (ϳ170 amino acids), and (iii) the Y domain (ϳ260 amino acids). A C2 or Ca 2ϩ -lipid binding domain is also present at the C-terminal end of PI-PLC-␥ and -␦. In all cases, the X and Y domains are necessary for catalysis (4) with the other domains involved in regulating activity. For example, in the case of PI-PLC-␦, the PH domain plays an allosteric role in binding the protein to a bilayer (5). PH domains also bind ␥ G proteins very tightly (6), and PI-PLC- activity is regulated by interactions with G q proteins (7,8).PI-PLC␥ isozymes are the largest of PI-PLC isozymes and are abundant in many tissues and cell types. The biological significance of the PI-PLC␥1 enzyme has been documented (2). When PI-P...