Regulation of membrane lipid composition is crucial for many aspects of cell growth and development. Lipins, a novel family of phosphatidate (PA) phosphatases that generate diacylglycerol (DAG) from PA, are emerging as essential regulators of fat metabolism, adipogenesis, and organelle biogenesis. The mechanisms that govern lipin translocation onto membranes are largely unknown. Here we show that recruitment of the yeast lipin (Pah1p) is regulated by PA levels onto the nuclear/endoplasmic reticulum (ER) membrane. Recruitment requires the transmembrane protein phosphatase complex Nem1p-Spo7p. Once dephosphorylated, Pah1p can bind to the nuclear/ER membrane independently of Nem1p-Spo7p via a short amino-terminal amphipathic helix. Dephosphorylation enhances the activity of Pah1p, both in vitro and in vivo, but only in the presence of a functional helix. The helix is required for both phospholipid and triacylglycerol biosynthesis. Our data suggest that dephosphorylation of Pah1p by the Nem1p-Spo7p complex enables the amphipathic helix to anchor Pah1p onto the nuclear/ER membrane allowing the production of DAG for lipid biosynthesis.L ipids play multiple key roles in membrane biogenesis, in signaling cascades, or in energy metabolism. These pathways depend largely on the regulated activation and recruitment of enzymes that respond to changes in membrane lipid composition. Lipins define a unique family of phosphatidate phosphatase (PAP) enzymes, conserved from yeasts to mammals, that catalyze a fundamental reaction in lipid and membrane biogenesis: the dephosphorylation of phosphatidate (PA) to diacylglycerol (DAG) (1), which is then acylated to produce triacylglycerol (TAG), the major form of fat stored in lipid droplets. In addition, both PA and DAG are intermediates for the biosynthesis of membrane phospholipids (Fig. 1A) (2, 3).Consistent with these key functions, recent studies have implicated lipins in a variety of processes in different systems. In budding yeast, the single lipin orthologue Pah1p regulates phospholipid and TAG content (1) as well as the transcription of many genes encoding lipid biosynthetic enzymes (4). Mammals express three paralogues called lipin 1, 2, and 3 that exhibit distinct but overlapping expression in many tissues (5). In mice, lipin 1 deficiency causes lipodystrophy, characterized by significant reduction in fat mass and lack of adipocyte differentiation (6), whereas overexpression of lipin 1 promotes obesity (7). Interestingly, lipins are also required for nuclear/endoplasmic reticulum (ER) membrane organization, both in fission and budding yeast (4,8) and Caenorhabditis elegans (9, 10).Surprisingly, in contrast to most other lipid biosynthetic enzymes, lipins lack transmembrane domains and therefore must first translocate onto membranes in order to dephosphorylate PA. How their activity is regulated in response to signals that modulate membrane biogenesis or energy storage is poorly understood. We show here that elevated PA levels recruit the yeast Pah1p onto a nuclear membrane s...