The Clostridium histolyticum 116-kDa collagenase consists of four segments, S1, S2a, S2b, and S3. A 98-kDa gelatinase, which can degrade denatured but not native collagen, lacks the C-terminal fragment containing a part of S2b and S3. In this paper we have investigated the function of the C-terminal segments using recombinant proteins. Full-length collagenase degraded both native type I collagen and a synthetic substrate, Pzpeptide, while an 88-kDa protein containing only S1 and S2a (S1S2a) degraded only Pz-peptide. Unlike the fulllength enzyme, S1S2a did not bind to insoluble type I collagen. To determine the molecular determinant of collagen binding activity, various C-terminal regions were fused to the C terminus of glutathione S-transferase. S3 as well as S2bS3 conferred collagen binding. However, a glutathione S-transferase fusion protein with a region shorter than S3 exhibited reduced collagen binding activity. S3 liberated from the fusion protein also showed collagen binding activity, but not S2aS2b or S2b. S1 had 100% of the Pz-peptidase activity but only 5% of the collagenolytic activity of the fulllength collagenase. These results indicate that S1 and S3 are the catalytic and binding domains, respectively, and that S2a and S2b form an interdomain structure.Collagens are the major protein constituents of the extracellular matrix and the most abundant proteins in all higher organisms (1). The tightly coiled triple helical collagen molecule assembles into water-insoluble fibers or sheets which are cleaved only by collagenases, and are resistant to other proteinases. Various types of collagenases, which differ in substrate specificity and molecular structure, have been identified and characterized. Bacterial collagenases differ from vertebrate collagenases in that they exhibit broader substrate specificity (2, 3). Clostridium histolyticum collagenase is the best studied bacterial collagenase (4) and is widely used as a tissuedispersing enzyme (5, 6). This enzyme is unique in that it can degrade both water-insoluble native collagens and water-soluble denatured ones, can attack almost all collagen types, and can make multiple cleavages within triple helical regions (4). Kinetic studies of collagenases have provided insight into the high-ordered structure of collagens (7,8). However, the structure-function relationship of this unique enzyme is not known.