A hallmark of signal transduction is the dynamic and inducible post-translational modification of proteins. In addition to the well characterized phosphorylation of proteins, other modifications have been shown to be regulatory, including O-linked -N-acetylglucosamine (O-GlcNAc). O-GlcNAc modifies serine and threonine residues on a myriad of nuclear and cytosolic proteins, and for several proteins there appears to be a reciprocal relationship between phosphorylation and O-GlcNAc modification. Here we report further evidence of this yin-yang relationship by demonstrating that O-GlcNAc transferase, the enzyme that adds O-GlcNAc to proteins, exists in stable and active complexes with the serine/ threonine phosphatases PP1 and PP1␥, enzymes that remove phosphate from proteins. The existence of this complex highlights the importance of understanding the dynamic relationship between O-GlcNAc and phosphate in modulating protein function in many cellular processes and disease states such as Alzheimer's disease and type II diabetes.Although there are only 21, counting selenocysteine, genomically encoded mammalian amino acids, post-translational modification results in proteins that contain more than 50 different amino acids (1). Thus, covalent modification of polypeptides plays a major role in the generation of functional polypeptides and adds an extra level of complexity in attempts to understand the proteome (2). While several protein modifications are static, a subset of post-translational modifications is both dynamic and inducible. It is the study of these "regulatory" posttranslational modifications and the enzymes that add and subtract them to proteins that comprises a significant portion of the signal transduction field (3).The most well studied and understood regulatory post-translational modification is phosphorylation (3). Accordingly, a significant body of literature has focused on the kinase superfamily, which makes up more than 2% of the proteins encoded by the human genome (4). Interestingly, in humans there appear to be only about 15 catalytic serine/threonine protein phosphatases (PPP subfamily) compared with literally hundreds of serine/threonine kinases (4). Thus, understanding how protein dephosphorylation is regulated has been an area of intense study for the last two decades (5, 6). One emerging theme is that the catalytic phosphatases have binding partners that regulate their localization and activity (7).Similar to phosphorylation, O-linked -N-acetylglucosamine (O-GlcNAc) modification of nuclear and cytosolic proteins is an abundant, dynamic, and inducible post-translational modification (8 -10). However, unlike kinases, there appears to be only one O-GlcNAc transferase catalytic subunit (OGT, 1 the enzyme that adds O-GlcNAc to proteins) in mammals (11). Similar to phosphatases, it has been proposed that OGT is regulated by a multitude of binding partners as well as post-translational modification and alternative splicing (12, 13). It has been demonstrated recently that OGT interacts with sever...