Post-translational stabilization of -catenin is a key step in Wnt signaling, but the features of -catenin required for stabilization are incompletely understood. We show that forms of -catenin lacking the unstructured C-terminal domain (CTD) show faster turnover than full-length or minimally truncated -catenins. Mutants that exhibit faster turnover show enhanced association with axin in co-transfected cells, and excess CTD polypeptide can compete binding of the -catenin armadillo (arm) repeat domain to axin in vitro, indicating that the CTD may restrict -catenin binding to the axin-scaffold complex. Fluorescent resonance energy transmission (FRET) analysis of cyan fluorescent protein (CFP)-arm-CTD-yellow fluorescent protein -catenin reveals that the CTD of -catenin can become spatially close to the N-terminal arm repeat region of -catenin. FRET activity is strongly diminished by the coexpression of -catenin binding partners, indicating that an unliganded groove is absolutely required for an orientation that allows FRET. Amino acids 733-759 are critical for -catenin FRET activity and stability. These data indicate that an N-terminal orientation of the CTD is required for -catenin stabilization and suggest a model where the CTD extends toward the N-terminal arm repeats, shielding these repeats from the -catenin destruction complex.The protein -catenin serves two fundamental roles in the formation and maintenance of tissues. At the cell surface, -catenin binds the cytoplasmic domain of cadherin-type adhesion receptors, allowing cells to engage their neighbors through robust intercellular adhering junctions. In the cytoplasm and nucleus, a cadherin-independent pool of -catenin interacts with TCF 3 -type transcription factors to activate genes that produce cells with distinct identities. The abundance of this cytosolic/nuclear pool of -catenin is largely determined by the presence of extracellular Wnt factors, which initiate a signaling cascade that prevents the continual destruction of cadherin-free -catenin.The destruction of -catenin is carried out by a highly coordinated series of phosphorylation events. In the absence of Wnt, the N terminus of -catenin is sequentially phosphorylated by casein kinase 1␣ and glycogen synthase kinase 3 (GSK3) (1, 2). Phosphorylation of -catenin by GSK at residues serine 33 and 37 allows recognition by the E3-ligase component TrCP, which when part of the SCF TrCP complex, catalyzes the ubiquitylation and rapid degradation of -catenin (3). This phosphorylation-dependent degradation of -catenin depends on the scaffold protein, axin, and the tumor suppressor APC. Axin has binding sites for casein kinase 1␣, GSK3, -catenin, and APC, so that phosphorylation of axin by casein kinase 1␣ and GSK3 increases binding to -catenin (4 -6), allowing the N-terminal region of -catenin to be a more efficient substrate of casein kinase 1␣ and GSK3 (7). Axin also promotes phosphorylation of APC by casein kinase 1⑀ and GSK3 (8,9), increasing the affinity of APC for -ca...