Our previous studies of DARPP-32 in striatal slices have shown that activation of D1 receptors leads to cAMP-dependent dephosphorylation of Thr-75, the Cdk5 site in DARPP-32. In the current study, we have elucidated a mechanism whereby protein phosphatase 2A (PP2A) is activated by a cAMP/PKA-dependent pathway, leading to dephosphorylation of Thr-75. PP2A consists of a catalytic C subunit that associates with the scaffolding A subunit and a variety of B subunits. We have found that the A/C subunits of PP2A, in association with the B56␦ (or PPP2R5D) regulatory subunit, is an active DARPP-32 phosphatase. The B56␦ subunit expressed in HEK293 cells forms a heterotrimeric assembly that catalyzes PKA-mediated dephosphorylation at Thr-75 in DARPP-32 (also cotransfected into HEK293 cells). The B56␦ subunit is phosphorylated by PKA, and this increases the overall activity of PP2A in vitro and in vivo. Among four PKA-phosphorylation sites identified in B56␦ in vitro, Ser-566 was found to be critical for the regulation of PP2A activity. Moreover, Ser-566 was phosphorylated by PKA in response to activation of D1 receptors in striatal slices. Based on these studies, we propose that the B56␦/A/C PP2A complex regulates the dephosphorylation of DARPP-32 at Thr-75, thereby helping coordinate the efficacy of dopaminergic neurotransmission in striatal neurons. Moreover, stimulation of protein phosphatase activity by this mechanism may represent an important signaling pathway regulated by cAMP in neurons and other types of cell.cAMP ͉ DARPP-32 ͉ protein phosphorylation D ARPP-32 is a phosphoprotein that is highly enriched in dopaminoceptive medium-sized spiny neurons in the striatum and nucleus accumbens (1, 2). A variety of biochemical studies as well as targeted deletion and mutation of DARPP-32 in mice have shown that DARPP-32 plays a critical role in the actions of dopamine as well as in the actions of antipsychotic drugs, drugs of abuse, and other agents that modulate dopamine levels in the brain (2-5). Through activation of the D1 subclass of receptors, dopamine increases cAMP, activates protein kinase A (PKA), and phosphorylates Thr-34 of DARPP-32. Phosphorylation at Thr-34 converts DARPP-32 into a potent, high-affinity inhibitor of the broad specificity serine/threonine protein phosphatase, PP-1, leading to increased phosphorylation of many physiologically important substrates in medium spiny neurons, including neurotransmitter receptors, voltage-gated ion channels, ion pumps, protein kinases, and transcription factors (1, 2).In addition to Thr-34, DARPP-32 is phosphorylated at multiple sites by several protein kinases, including CK1, CK2 and Cdk5 (6-9). In particular, phosphorylation of Thr-75 by Cdk5 blocks PKA-mediated phosphorylation of Thr-34 of DARPP-32, thereby modulating the efficacy of the dopamine/D1/cAMP/ PKA/DARPP-32/PP1 signaling cascade (8). Our previous studies have found that there is a reciprocal relationship between the phosphorylation status of . Under basal conditions in striatal neurons in vivo or in vit...