Catalytic mechanisms and inhibitor sensitivityPSTPs and PTPs use completely different catalytic mechanisms to dephosphorylate their substrates (Barford et al., 1998). Briefly, the PTPs share the conserved active site motif HCX 5 R, in which the essential catalytic cysteine acts as a nucleophile and forms an intermediate phospho-cysteine during hydrolysis (Barford et al., 1998;Fauman and Saper, 1996). By contrast, the phosphatases of Summary Dynamic control of protein phosphorylation is necessary for the regulation of many cellular processes, including mitosis and cytokinesis. Indeed, although the central role of protein kinases is widely appreciated and intensely studied, the importance of protein phosphatases is often overlooked. Recent studies, however, have highlighted the considerable role of protein phosphatases in both the spatial and temporal control of protein kinase activity, and the modulation of substrate phosphorylation. Here, we will focus on recent advances in our understanding of phosphatase structure, and the importance of phosphatase function in the control of mitotic spindle formation, chromosome architecture and cohesion, and cell division. ) and iron (Fe 2+ ), which are coordinated by a set of conserved amino acid residues (Shi, 2009). These bound metal ions coordinate the phosphate group of the substrate and stabilize the negative charge, thus facilitating nucleophilic attack on the phosphorus by a water molecule and hydrolysis of the phosphate ester bond (Goldberg et al., 1995). The catalytic subunits of the PPP family are so similar (Fig. 1A) that all family members are inhibited by the potent algal toxins microcystin-LR and okadaic acid (Fig. 1B), and share three substrate-peptide-binding grooves that lead to the catalytic site (Fig. 1C).Despite their similarity, the catalytic subunits of PPP family members PP1 and PP2A can be distinguished, to some extent, by their sensitivity to inhibition by okadaic acid. PP2A is inhibited by okadaic acid in the subnanomolar range [half-maximal inhibitory concentration (IC 50 )0.1 nM], whereas PP1 requires 100-fold higher concentrations of okadaic acid for inhibition . At a structural level, this can be explained by the absence of specific hydrophobic residues in the catalytic cleft of PP1 that are present in PP2A and are required for tight binding of the hydrophobic end of okadaic acid . However, although the catalytic subunits of PP1 and PP2A are highly active in isolation, and can be discriminated in terms of toxin sensitivity, they lack appreciable substrate specificity (Agostinis et al., 1992; Imaoka et al., 1983;Mumby et al., 1987). This close similarity and activity of their catalytic subunits are difficult to reconcile with their biological functions and specific substrates observed in cells. It is therefore unsurprising that these catalytic subunits associate with specific regulatory subunits that direct the biological activity of the PPP family phosphatases in living cells. As we will discuss later, this is necessary to explain how PP1...