C-type natriuretic peptide binding to natriuretic peptide receptor-B (NPR-B) stimulates cGMP synthesis, which regulates vasorelaxation, cell proliferation, and bone growth. Here, we investigated the mechanistic basis for hyperosmotic and lysophosphatidic acid-dependent inhibition of NPR-B. Whole cell cGMP measurements and guanylyl cyclase assays indicated that acute hyperosmolarity decreased NPR-B activity in a reversible, concentration-and time-dependent manner, whereas chronic exposure had no effect. Acute hyperosmolarityelevatedintracellularcalciuminaconcentrationdependent fashion that paralleled NPR-B desensitization. A calcium chelator, but not a protein kinase C inhibitor, blocked both calcium elevations and desensitization. Hyperosmotic medium stimulated NPR-B dephosphorylation, and the receptor was rapidly rephosphorylated and resensitized when the hypertonic media was removed. Lysophosphatidic acid also inhibited NPR-B in a calcium-and phosphorylation-dependent process, consistent with calcium being a universal regulator of NPR-B. The absolute requirement of dephosphorylation in this process was demonstrated by showing that a receptor with glutamates substituted at all known NPR-B phosphorylation sites is unresponsive to hyperosmotic stimuli. This is the first study to measure the phosphorylation state of an endogenous guanylyl cyclase and to link intracellular calcium elevations with its dephosphorylation.The mammalian natriuretic peptide family consists of three members: atrial natriuretic peptide (ANP), 1 brain natriuretic peptide (BNP), and C-type natriuretic peptide (CNP) (1). ANP and BNP are produced in atrial and ventricular myocytes, respectively. ANP reduces blood pressure by stimulating sodium and water excretion, by stimulating vasorelaxation, and by inhibiting renin and aldosterone secretion. CNP is most highly expressed in the brain (2), endothelial cells (3), and chondrocytes (4, 5). It relaxes vascular smooth muscle cells (6) and inhibits their proliferation (7), a process that has been exploited to inhibit vascular restenosis and to stimulate vascular regeneration (8). In addition, CNP stimulates the proliferation of chondrocytes, which promotes the growth of long bones (4, 5). Natriuretic peptide receptors are structurally related cell surface guanylyl cyclases called natriuretic peptide receptor-A (NPR-A) and natriuretic peptide receptor-B (NPR-B) or guanylyl cyclase-A and guanylyl cyclase-B (9 -11). They consist of an extracellular ligand binding domain, a single membrane-spanning region and intracellular kinase homology, dimerization, and carboxyl-terminal guanylyl cyclase domains. ANP and BNP activate NPR-A, whereas CNP activates NPR-B. Binding of these receptors by their respective ligands stimulates the synthesis of the intracellular second messenger, cGMP.The mechanisms regulating NPR-A and NPR-B activity are incompletely understood. It is known, however, that receptor phosphorylation is required for natriuretic peptide activation and that prolonged exposure to natriuretic peptid...