The ATP-dependent enzyme dethiobiotin synthetase from Escherichia coli catalyses the formation of dethiobiotin from CO 2 and 7,8-diaminopelargonic acid. The reaction is initiated by the formation of a carbamate and proceeds through a phosphorylated intermediate, a mixed carbamic phosphoric anhydride. Here, we report the crystal structures at 1.9-and 1.6-Å resolution, respectively, of the enzyme-MgATP-diaminopelargonic acid and enzymeMgADP-carbamic-phosphoric acid anhydride complexes, observed by using kinetic crystallography. Reaction initiation by addition of either NaHCO 3 or diaminopelargonic acid to crystals already containing cosubstrates resulted in the accumulation of the phosphorylated intermediate at the active site. The phosphoryl transfer step shows inversion of the configuration at the phosphorus atom, consistent with an in-line attack by the carbamate oxygen onto the phosphorus atom of ATP. A key feature in the structure of the complex of the enzyme with the reaction intermediate is two magnesium ions, bridging the phosphates at the cleavage site. These magnesium ions compensate the negative charges at both phosphate groups after phosphoryl transfer and contribute to the stabilization of the reaction intermediate.A catalytic strategy used by many enzymes is to use nucleotide triphosphates, in particular ATP, for leaving group activation. In general, this strategy can be accomplished by transfer of the ␥-phosphoryl group of the nucleotide to the substrate. The resulting phosphorylated intermediate decomposes into phosphate and product. The penultimate enzyme in the biotin biosynthetic pathway, dethiobiotin synthetase (DTBS), uses this strategy. This enzyme catalyzes the ATP-dependent formation of the cyclic urea dethiobiotin from (7R,8S)-diaminononanoic acid [7,8-diaminopelargonic acid (DAPA)] and CO 2 . As a catalyst, the enzyme is rather inefficient, with k cat ϭ 1.5 min Ϫ1 under standard assay conditions (2, 4). DTBS was first studied by Eisenberg (1, 2), who proposed that the reaction consists of several steps (Fig. 1). The first step, formation of a DAPA carbamate, later was shown to proceed regiospecifically at N7 (3-5). The second proposed intermediate, a mixed carbamic-phosphoric acid anhydride formed by transfer of the ␥-phosphoryl group of ATP to a carbamate oxygen (6), has been isolated, with a lifetime of Ϸ25 min under certain conditions (7). It has been suggested that the last step, ring closure, proceeds through a tetrahedral intermediate (3).The three-dimensional structure of the enzyme (5, 8, 9) revealed a homodimer with the two equivalent active sites, separated by Ϸ25 Å, at the interface between the two subunits. The structure of DTBS is similar to the structure of other phosphotransferases, in particular adenylate kinase (10) and p21ras (11). Crystallographic studies (3) of complexes of DTBS with DAPA and͞or a nonhydrolyzable ATP analogue, adenylyl [,␥-methylene]diphosphonate (AMPPCP), suggested that conformational changes during catalysis were minor and that these crysta...