Fructose-1,6-bisphosphatase (FBPase) governs a key step in gluconeogenesis, the conversion of fructose 1,6-bisphosphate into fructose 6-phosphate. In mammals, the enzyme is subject to metabolic regulation, but regulatory mechanisms of bacterial FBPases are not well understood. Presented here is the crystal structure (resolution, 1.45 Å ) of recombinant FBPase from Escherichia coli, the first structure of a prokaryotic Type I FBPase. The E. coli enzyme is a homotetramer, but in a quaternary state between the canonical Rand T-states of porcine FBPase. Phe 15 and residues at the C-terminal side of the first ␣-helix (helix H1) occupy the AMP binding pocket. Residues at the N-terminal side of helix H1 hydrogen bond with sulfate ions buried at a subunit interface, which in porcine FBPase undergoes significant conformational change in response to allosteric effectors. Phosphoenolpyruvate and sulfate activate E. coli FBPase by at least 300%. Key residues that bind sulfate anions are conserved among many heterotrophic bacteria, but are absent in FBPases of organisms that employ fructose 2,6-bisphosphate as a regulator. These observations suggest a new mechanism of regulation in the FBPase enzyme family: anionic ligands, most likely phosphoenolpyruvate, bind to allosteric activator sites, which in turn stabilize a tetramer and a polypeptide fold that obstructs AMP binding.Fructose-1,6-bisphosphatase (D-fructose-1,6-bisphosphate 1-phosphohydrolase, EC 3. 1.3.11; FBPase) 2 is a key enzyme of the gluconeogenic pathway, hydrolyzing fructose 1,6-bisphosphate (Fru-1,6-P 2 ) to fructose 6-phosphate (Fru-6-P) and inorganic phosphate (P i ) (1, 2). In Escherichia coli, the most likely role of FBPase is the generation of fivecarbon precursors for nucleotide and polysaccharide production (3, 4). Microbial strains without FBPase (gene deletion mutants) cannot grow on gluconeogenic substrates, but thrive on glucose or other hexoses (3).FBPase and fructose-6-phosphate-1-kinase are constitutive enzymes in E. coli, and in the absence of some kind of coordinate regulation, define a futile cycle (5). Futile cycling, however, is minimal under glycolytic (6) and gluconeogenic (7) conditions, and hence FBPase must be under metabolic control. In mammals, AMP and fructose 2,6-bisphosphate (Fru-2,6-P 2 ) synergistically inhibit FBPase (8). Fru-2,6-P 2 , the concentration of which is subject to hormonal control, directly inhibits FBPase by binding to its active site, whereas AMP binds to an allosteric site (5, 9, 10) and induces a conformational change, converting the enzyme from an active quaternary conformation (R-state) to an inactive form (T-state) (11-13). In contrast, little is known regarding the regulation of FBPase in E. coli. AMP is a potent inhibitor of the E. coli enzyme (4, 14 -16), but Fru-2,6-P 2 is not present. (Fru-2,6-P 2 , however, does inhibit E. coli FBPase in assays (15, 16).) Dynamic regulation by AMP alone is unlikely, because AMP concentrations in vivo remain relatively constant under gluconeogenic and glycolytic condit...