We have determined the X-ray crystal structures of the pre-and postcatalytic forms of the initiation complex of bacteriophage N4 RNA polymerase that provide the complete set of atomic images depicting the process of transcript initiation by a single-subunit RNA polymerase. As observed during T7 RNA polymerase transcript elongation, substrate loading for the initiation process also drives a conformational change of the O helix, but only the correct base pairing between the þ2 substrate and DNA base is able to complete the O-helix conformational transition. Substrate binding also facilitates catalytic metal binding that leads to alignment of the reactive groups of substrates for the nucleotidyl transfer reaction. Although all nucleic acid polymerases use two divalent metals for catalysis, they differ in the requirements and the timing of binding of each metal. In the case of bacteriophage RNA polymerase, we propose that catalytic metal binding is the last step before the nucleotidyl transfer reaction. D NA-dependent RNA polymerases (RNAPs) transcribe DNA genetic information into RNA and play a central role in gene expression. RNAP catalyzes a nucleotidyl transfer reaction, which is initiated by the nucleophilic attack of an O3′ oxyanion at the RNA 3′ terminus to the α-phosphate (αP) of the incoming nucleotide, resulting in phosphodiester bond formation and release of pyrophosphate (PPi). Both single-subunit T7 phage-like RNAPs and the multisubunit cellular RNAPs possess two nucleotide-binding sites for loading the RNA 3′ end (P site) and the incoming NTP (N site) (1, 2). A two metal-ion catalytic mechanism has been proposed, as the enzyme possesses two divalent catalytic and nucleotide-binding metal cations chelated by two or three conserved Asp residues (3). The catalytic metal is a Lewis acid, coordinating the RNA 3′-OH lowering its pK a and facilitating the formation of the attacking oxyanion. The nucleotide-binding metal is coordinated by the triphosphate of the incoming nucleotide and stabilizes a pentacovalent phosphate intermediate during the reaction. Both metal ions are proposed to have octahedral coordination at physiological Mg 2þ concentrations (4). During transcript elongation, RNAP carries out the loading of a single nucleotide substrate at the N site followed by a nucleotidyl transfer reaction with the RNA 3′ end at the P site; this cycle is repeated as elongation proceeds. X-ray crystal structures of the single-subunit T7 phage RNAP (2, 5) have depicted the process of transcript elongation in detail and reveal a conformational change of the Fingers subdomain during substrate loading to the active site as also observed in the A family of DNA polymerases (DNAPs) (6, 7).Initiation is the only step in the entire transcription process where two nucleotide substrates are loaded at the active site followed by a nucleotidyl transfer reaction. Compared with elongation, the process of initiation has not been well characterized by X-ray crystallography. An X-ray crystal structure of T7 RNAP initiation complex...