An algorithm is described which uses a finite number of differentiations and linear operations to determine the Cartan structure of a transitive Lie pseudogroup from its infinitesimal defining equations. In addition, an algorithm is presented for determining from the infinitesimal defining system whether a Lie pseudogroup has essential invariants. If such invariants exist, the pseudogroup is intransitive. These methods make feasible the calculation of the Cartan structure of infinite Lie pseudogroups of symmetries of differential equations. The structure of the symmetry pseudogroup of the KP equation is presented.c 1998 Academic Press 0747-7171/98/090355 + 25 $30.00/0 c 1998 Academic Press the remainder of this section, the indices i, j, l range from 1 to n. We use the notation ξ i J to represent the Jth derivative ∂ k ξ i /∂x j1 · · · ∂x j k of ξ i , where J = (j 1 j 2 · · · j k ) is a symmetric multi-index, whose order will be denoted by k = #(J).Reduction of a qth order involutive PDE system to a first-order involutive form with equivalent symbol is achieved via an algorithm described by Pommaret (1978, pp. 109, 161). The derivatives ξ i J , 1 ≤ #(J) ≤ q − 1 are relabelled as new dependent variables, and the given system expressed as a first-order system in these variables. Certain firstorder differential relations between the ξ i J are then appended; the composite system is first-order involutive. Now the system must be adjusted so that it is the defining system of a Lie algebra. Following Cartan, we lift the vector field X on M to one on M × M , by giving it trivial action on the second copy of M . Prolonging the vector field q − 1 times giveswhere x i are coordinates on the first copy of M , and X i on the second. Here the derivatives of the Xs are denoted by X i J = ∂ k X i /∂x j1 ∂x j2 · · · ∂x j k We have set ψ i = 0; the ψ i J are given by the standard prolongation formula (Olver, 1993), and there is summation on the repeated index i and the repeated multi-index J, 1 ≤ #(J) ≤ q − 1. The main result is Theorem 2.9. Let L be a Lie algebra system of vector fields X = ξ i ∂ x i whose infinitesimal defining system is qth order involutive. Then the prolongation X (q−1) of X to (x i , X i , X i J )-space is a Lie algebra system with an infinitesimal defining system for ξ i , ψ i , ψ i J which is first-order involutive, and which is constructively determined.Note that the independent variables in the infinitesimal defining system of the original Lie algebra are x i . For the prolonged Lie algebra the independent variables in the firstorder defining system are (x i , X i , X i J ), and the corresponding dependent variables ξ i , ψ i ,Proof. Let S denote the first-order involutive system with independent variables x i obtained by the transformation of Pommaret from the qth order involutive infinitesimal defining system. Let T denote S augmented with the equations(2.6) (Thus the system T has independent variables x i , X i J , and dependent variables ξ i J , with 0 ≤ #(J) ≤ q − 1.) Since the system S has no X i J...