Paramecium bursaria chlorella virus 1 (PBCV-1) elicits a lytic infection of its unicellular green alga host. The 330-kbp viral genome has been sequenced, yet little is known about how viral mRNAs are synthesized and processed. PBCV-1 encodes its own mRNA guanylyltransferase, which catalyzes the addition of GMP to the 5 diphosphate end of RNA to form a GpppN cap structure. Here we report that PBCV-1 encodes a separate RNA triphosphatase (RTP) that catalyzes the initial step in cap synthesis: hydrolysis of the ␥-phosphate of triphosphate-terminated RNA to generate an RNA diphosphate end. We exploit a yeast-based genetic system to show that Chlorella virus RTP can function as a cap-forming enzyme in vivo. The 193-amino-acid Chlorella virus RTP is the smallest member of a family of metal-dependent phosphohydrolases that includes the RNA triphosphatases of fungi and other large eukaryotic DNA viruses (poxviruses, African swine fever virus, and baculoviruses). Chlorella virus RTP is more similar in structure to the yeast RNA triphosphatases than to the enzymes of metazoan DNA viruses. Indeed, PBCV-1 is unique among DNA viruses in that the triphosphatase and guanylyltransferase steps of cap formation are catalyzed by separate viral enzymes instead of a single viral polypeptide with multiple catalytic domains.The m7GpppN cap structure of eukaryotic mRNA is formed cotranscriptionally by three enzymatic reactions: (i) the 5Ј triphosphate end of the nascent RNA is hydrolyzed to a diphosphate by RNA triphosphatase (RTP), (ii) the diphosphate end is capped with GMP by GTP:RNA guanylyltransferase, and (iii) the GpppN cap is methylated by S-adenosylmethionine: RNA (guanine-N7) methyltransferase (27). DNA viruses have evolved diverse capping strategies. The mRNAs of papovaviruses, parvoviruses, adenoviruses, and herpesviruses are transcribed in the nucleus by RNA polymerase II (Pol II), and their 5Ј ends are modified by the host cell's capping and methylating enzymes. However, vaccinia virus and other poxviruses, which replicate in the cytoplasm, encode and encapsidate with the virus particle a multisubunit RNA polymerase and a complete mRNA capping apparatus (26). African swine fever virus (ASFV), which has a cytoplasmic replication phase, also encodes and encapsidates an RNA polymerase and mRNA capping enzymes (24). Baculoviruses, which replicate in the nucleus of insect cells, use Pol II to transcribe early genes, then switch at later times to a virus-encoded transcription system that includes an RNA polymerase and two cap-forming activities-RTP and RNA guanylyltransferase (4,5,14). Paramecium bursaria chlorella virus 1 (PBCV-1) encodes an RNA guanylyltransferase (7), but it is not clear whether it encodes an RNA polymerase and additional mRNA-processing activities.The triphosphatase, guanylyltransferase, and methyltransferase components of the capping apparatus are organized differently in these DNA virus systems. The triphosphatase, guanylyltransferase, and methyltransferase active sites of the vaccinia virus capping enzym...