During response of budding yeast to peptide mating pheromone, the cell becomes markedly polarized and MAPK scaffold protein Ste5 localizes to the resulting projection (shmoo tip). We demonstrated before that this recruitment is essential for sustained MAPK signaling and requires interaction of a pleckstrin homology (PH) domain in Ste5 with phosphatidylinositol 4,5-bisphosphate [PtdIns (4,5)P 2 ] in the plasma membrane. Using fluorescently tagged highaffinity probes specific for PtdIns(4,5)P 2 , we have now found that this phosphoinositide is highly concentrated at the shmoo tip in cells responding to pheromone. Maintenance of this strikingly anisotropic distribution of PtdIns(4,5)P 2 , stable tethering of Ste5 at the shmoo tip, downstream MAPK activation, and expression of a mating pathway-specific reporter gene all require continuous function of the plasma membrane-associated PtdIns 4-kinase Stt4 and the plasma membrane-associated PtdIns4P 5-kinase Mss4 (but not the Golgi-associated PtdIns 4-kinase Pik1). Our observations demonstrate that PtdIns(4,5)P 2 is the primary determinant for restricting localization of Ste5 within the plasma membrane and provide direct evidence that an extracellular stimulus-evoked selfreinforcing mechanism generates a spatially enriched pool of PtdIns (4,5)P 2 necessary for the membrane anchoring and function of a signaling complex.α-factor | phosphoinositides | scaffold protein | yeast mating response E ukaryotic cells respond to extracellular stimuli and spatial cues via signaling responses that can dramatically alter cell polarity. Ample evidence from diverse cell types indicates that membrane phosphoinositides, especially phosphatidylinositol 4,5-bisphosphate [PtdIns(4,5)P 2 ] (1), are key regulators of processes, like cytoskeletal remodeling (2) and vesicle-mediated trafficking (3, 4), which are required for polarized growth, cell morphogenesis, and cell division (5). In both mammalian leukocytes and migratory Dictyostelium discoideum amoebae, exposure to chemoattractant results in spatial restriction of PtdIns(3,4,5)P 3 , as well as of the enzymes that catalyze its synthesis (PtdIns 3-kinase) and breakdown [phosphatidylinositol 3-phosphatase and tensin homolog (PTEN)] (6). Likewise, in mammalian kidney cells, localized action of the PtdIns(3,4,5)P 3 phosphatase PTEN plays a key role in determining epithelial cell polarity by defining the content of this lipid in the apical and basolateral membranes (7), thereby affecting the distribution of small GTPases that dictate cell shape (8). Membrane phosphoinositides were also shown to play an important role in driving anchor cell invasion during Caenorhabditis elegans development (9). These examples all indicate that membrane subdomains enriched for specific phosphoinositides are crucial for attracting signaling components specific for establishment and/or maintenance of cell polarity.Likewise, in Saccharomyces cerevisiae, phosphoinositides in the plasma membrane have been implicated in the recruitment of proteins involved in polarized...