The binding of phenol to phenol hydroxylase was studied by equilibrium dialysis, spectrophotometric titration and by steady-state kinetics. A binding model with two identical, negatively cooperative, effector/substratebinding sites per enzyme dimer is proposed. The spectral perturbation caused by phenol and the kinetics of the overall reaction were analysed with relation to the enzyme-phenol complexes of the binding model. The main part of the spectral perturbation as well as of the increase in NADPH oxidation rate was achieved by one molecule of phenol bound per enzyme dimer. The properties of different enzyme-phenol complexes, in terms of spectral changes, hydroxylase activity, oxidase activity and substrate inhibition are discussed. A new purification procedure is described.Phenol hydroxylase is an external monoxygenase catalyzing the following reaction [l]:Unlike most flavin-dependent aromatic hydroxylases studied, phenol hydroxylase is isolated from a eucaryote, the soil yeast Trichosporon cutaneum. It has a strict requirement for NADPH [2]. It also acts as an NADPH oxidase, producing HzOz from NADPH and oxygen [3]. The enzyme is dimeric ( M , = 2 x 76000) and contains two non-covalently bound FAD per dimer [4]. Steady-state kinetics are consistent with the bi-uni-uni-bi ping-pong mechanism proposed for other aromatic hydroxylases. The mechanism is ordered with the phenolic substrate binding before NADPH followed by reduction of the flavin and release of NADP'. Molecular oxygen then reacts with the reduced enzyme-phenol complex [5].The phenolic substrates of phenol hydroxylase act as effectors, increasing the reactivity of the enzyme towards NADPH [3,5]. They also cause perturbation of the absorption spectrum of the enzyme-bound FAD [6, 71, quenching of FAD fluorescence [6] and changes in the reactivity of essential amino acid residues [4, 8, 91. In p-hydroxybenzoate hydroxylase, which is the most extensively studied of the aromatic hydroxylases, the influence of effector on the enzyme-flavin interaction has also been studied by NMR [lo], time-resolved fluorescence techniques [l 11 and by the reactivity of enzyme-bound flavin analogues [12]. Substrate inhibition is observed with many phenolic substrates, including phenol itself [3]. Also the spectral perturbation is partially reversed by high concentrations of phenol [6].