Type III polyketide synthases (PKSs) are responsible for aromatic polyketide synthesis in plants and bacteria. Genome analysis of filamentous fungi has predicted the presence of fungal type III PKSs, although none have thus far been functionally characterized. In the genome of Neurospora crassa, a single open reading frame, NCU04801.1, annotated as a type III PKS was found. In this report, we demonstrate that NCU04801.1 is a novel type III PKS catalyzing the synthesis of pentaketide alkylresorcylic acids. NCU04801.1, hence named 2-oxoalkylresorcylic acid synthase (ORAS), preferred stearoyl-CoA as a starter substrate and condensed four molecules of malonyl-CoA to give a pentaketide intermediate. For ORAS to yield pentaketide alkylresorcylic acids, aldol condensation and aromatization of the intermediate, which is still attached to the enzyme, are presumably followed by hydrolysis for release of the product as a resorcylic acid. ORAS is the first type III PKS that synthesizes pentaketide resorcylic acids.Polyketides are synthesized by so-called polyketide synthases (PKSs) 2 that fall into three groups, types I to III (1). Ketosynthase, which is a pivotal domain for polyketide synthesis, catalyzes the sequential decarboxylative condensation of extender substrates by a process closely similar to fatty acid biosynthesis. In contrast to type I and II megasynthases composed of ketosynthases and accessory enzymes, type III PKSs are a dimer of ketosynthase that accomplishes a complex set of reactions, such as priming of a starter substrate, decarboxylative condensation of extender substrates, ring closure, and aromatization of the polyketide chain, in a multifunctional active site pocket (2). A growing number of type III PKSs catalyzing the synthesis of aromatic polyketides have been found from plants and bacteria, and their catalytic properties have been characterized. Chalcone synthases, the representative of type III PKSs in plants, catalyze the synthesis of naringenin chalcone, which is a common precursor of all flavonoids produced by plants (2). RppA, the first type III PKS found in bacteria, catalyzes the synthesis of 1,3,6,8-tetrahydroxynaphthalene, which is a precursor of hexahydroxyperylenequinone melanin in a bacterium, Streptomyces griseus (3).Filamentous fungi produce a vast array of polyketides such as melanins, antibiotics, and mycotoxins (4). The pathways and regulation of biosynthesis of the aromatic polyketides in filamentous fungi have been studied extensively for mycotoxins, including aflatoxin and fumonisin, produced by food spoilage fungi (5) and for melanogenesis associated with infection of plant-pathogenic fungi (6). In addition, the clinical benefit of lovastatin, a cholesterol-lowering agent, produced by Aspergillus terreus (7), promotes isolation of the biosynthetic genes for polyketides in fungi. Nevertheless, the enzyme systems for the synthesis of fungal polyketides have been confined to iterative type I PKSs, which are composed of a large multifunctional polypeptide containing discrete fu...