SET domain lysine methyltransferases (KMTs) methylate specific lysine residues in histone and non-histone substrates. These enzymes also display product specificity by catalyzing distinct degrees of methylation of the lysine ⑀-amino group. To elucidate the molecular mechanism underlying this specificity, we have characterized the Y245A and Y305F mutants of the human KMT SET7/9 (also known as KMT7) that alter its product specificity from a monomethyltransferase to a di-and a trimethyltransferase, respectively. Crystal structures of these mutants in complex with peptides bearing unmodified, mono-, di-, and trimethylated lysines illustrate the roles of active site water molecules in aligning the lysine ⑀-amino group for methyl transfer with S-adenosylmethionine. Displacement or dissociation of these solvent molecules enlarges the diameter of the active site, accommodating the increasing size of the methylated ⑀-amino group during successive methyl transfer reactions. Together, these results furnish new insights into the roles of active site water molecules in modulating lysine multiple methylation by SET domain KMTs and provide the first molecular snapshots of the mono-, di-, and trimethyl transfer reactions catalyzed by these enzymes.SET domain enzymes represent a family of S-adenosylmethionine (AdoMet) 3 -dependent methyltransferases that catalyze the site-specific methylation of protein lysyl residues in a host of proteins, including histones, transcription factors, chromatin-modifying enzymes, ribosomal subunits, and other substrates (1-3). In many instances, these modifications serve to recruit effector proteins that recognize methyl-lysyl residues in a sequence-dependent fashion (4). In addition, SET domain KMTs exhibit product specificity, defined as their ability to catalyze mono-, di-, or trimethylation of the lysine ⑀-amino group. This specificity is biologically relevant because many methyllysine-binding proteins can discriminate among different degrees of lysine methylation (4). Thus, both the site and degree of lysine methylation are critical to recognition by effector proteins.Structural and functional studies have identified a Phe/Tyr switch in the active site of SET domain KMTs that governs their respective product specificities (5, 6). According to this model, KMTs that possess a tyrosine in the Phe/Tyr switch site are limited to catalyzing lysine monomethylation, whereas enzymes that possess a phenylalanine or another hydrophobic residue in this position display di-or trimethyltransferase activity. Mutational analysis of various SET domain KMTs, including DIM-5 (KMT1) (6), SET7/9 (6), G9A (KMT1C) (5), and SET8 (also known as PR-SET7 and KMT5A) (7,8), has demonstrated that substitutions in the Phe/Tyr switch result in predictable changes in product specificity. Several models have been proposed to explain the mechanism by which the Phe/Tyr switch site governs this specificity, including variations in the diameter of the active site due to the size of Phe/Tyr switch residue and steric hindrance by t...