Keratinocytes follow a complex program of differentiation from the basal layer to the spinous and granular layers of the epidermis, which ultimately leads to the formation of a waterimpermeable barrier. The final phase in epidermal differentiation is characterized by granular cell death, destruction of organelles, covalent cross-linking of cornified envelope precursors by Ca 2ϩ -dependent transglutaminases (TGases), 1 and attachment of lipid molecules to the cross-linked envelopes (1). This program is accomplished through specific transcriptional induction and repression of structural and enzymatic differentiation-specific markers (2). The differentiation process can be recapitulated partially in mouse keratinocytes cultivated in vitro by increasing the Ca 2ϩ concentration in the culture medium (3) and is associated with the activation of protein kinase C (PKC) (4). This produces a situation that mimics the endogenous Ca 2ϩ gradient present in the skin, with low extracellular levels surrounding the basal cells and increasing levels toward the upper granular layers (5). The ability to induce differentiation in primary cultured keratinocytes, along with the presence of a Ca 2ϩ gradient, underscores the importance of this ion and the Ca 2ϩ -dependent signaling pathways in the epidermis.A crucial role for the transduction of the Ca 2ϩ signal is accomplished by members of the Ca 2ϩ -binding proteins, which are characterized by the presence of a common helix-loop-helix structural motif in their Ca 2ϩ -binding domain, termed EFhand (6). These proteins function by undergoing conformational changes upon binding of Ca 2ϩ , allowing the association and regulation of activity of a range of specific target proteins. EF-hand-containing proteins have been described in epidermis; these include the large proteins profilaggrin and repetin (7,8), which present EF-hand motifs in the NH 2 -terminal region followed by multiple tandem repeats and members of the dimeric EF-hand S100 multigenic family (9 -11). The best studied of the Ca 2ϩ -signaling proteins is CaM, a small, highly conserved, and ubiquitous protein that is crucial to many Ca 2ϩ -dependent processes in eukaryotes (6, 12). The functions of many proteins involved in cell signaling by phosphorylation/dephosphorylation or in the modulation of intracellular levels of second messengers are reportedly CaM-dependent (12). Recently, several Ca 2ϩ -binding proteins with structural homology to CaM have been reported: calcium-binding proteins (CaBPs) (13, 14), hClp (15), and the human skin-specific hClsp (16,17).We present the cloning, genomic structure, expression, and functional assay for a novel mouse Ca 2ϩ -binding protein that we have termed Scarf. The Scarf open reading frame (ORF) codes for a small protein with four EF-hand Ca 2ϩ -binding domains. The Scarf gene and protein are differentially expressed in vivo in the spinous and granular layers of the epidermis. We also present the identification of a second highly homologous gene, Scarf2, which localizes 15 kb downstream fr...