Type II polyketides are a class of natural products that include pharmaceutically important aromatic compounds such as the antibiotic tetracycline and antitumor compound doxorubicin. The type II polyketide synthase (PKS) is a complex consisting of 5-10 standalone domains homologous to fatty acid synthase (FAS). Polyketide ketoreductase (KR) provides regio-and stereochemical diversity during the reduction. How the type II polyketide KR specifically reduces only the C9 carbonyl group is not well understood. The cocrystal structures of actinorhodin polyketide ketoreductase (actKR) bound with NADPH or NADP + and the inhibitor emodin were solved with the wild type and P94L mutant of actKR, revealing the first observation of a bent p-quinone in an enzyme active site. Molecular dynamics simulation help explain the origin of the bent geometry. Extensive screening for in vitro substrates shows that unlike FAS KR, the actKR prefers bicyclic substrates. Inhibition kinetics indicate that actKR follows an ordered Bi Bi mechanism. Together with docking simulations that identified a potential phosphopantetheine binding groove, the structural and functional studies reveal that the C9 specificity is a result of active site geometry and substrate ring constraints. The results lay the foundation for the design of novel aromatic polyketide natural products with different reduction patterns.The pharmaceutical potential of bacterial or fungal natural products is illustrated by the large number of compounds that are clinically applied as therapeutics. Many pharmaceutically relevant natural products are derived from polyketides and are used as antibiotic (tetracyclines, actinorhodin), anticancer (doxorubicin), antiviral (rebeccamycin derivatives), and cholesterollowering (statins) compounds (1). The antibiotics such as tetracycline and actinorhodin are biosynthesized from acyl-CoA thiosters by type II polyketide synthases (PKSs 1 ), which are structurally and functionally related to the type II fatty acid synthase (FAS) (2). Compared to the type I FAS and PKS, which have enzyme domains covalently linked together, the type II FAS and PKS consist of 5-10 standalone enzymes that catalyze the condensation of malonyl extender units iteratively, followed by chain modifications, to produce the aromatic polyketides (3,4). † This work is supported by the Pew Foundation and National Institute of General Medicinal Sciences (NIGMS R01GM076330). ‡ The atomic coordinates have been deposited in the Protein Data Bank (accession code 2RH4, 2RHC, and 2RHR).* Author to whom correspondence should be addressed. Phone 949-824-4486, e-mail sctsai@uci.edu, fax 949-824-8552. ⊥ Department of Molecular Biology and Biochemistry. § Department of Chemistry.1 Abbreviations: KR, ketoreductase; FabG, β-ketoacyl [acyl carrier protein] reductase; Act, actinorhodin; PKS, polyketide synthase; NADP, nicotinamide adenine dinucleotide phosphate; NADPH, reduced nicotinamide adenine dinucleotide phosphate; SDR, short-chain dehydrogenase/reductase; T3HNR, 1,3,8-trihydro...