Protein phosphatase 1 (PP1) is a multifunctional enzyme with diverse roles in the nervous system, including regulation of synaptic activity and dendritic morphology. PP1 activity is controlled via association with a family of regulatory subunits that govern subcellular localization and substrate specificity. A previously undescribed class of PP1-binding proteins was detected by interaction cloning. Family members were also found to bind to cytoplasmic actin via Arg, Pro, Glu, and Leu repeat-containing sequences. The prototypical member of this family, phosphatase and actin regulator (phactr) 1 was a potent modulator of PP1 activity in vitro. Phactr-1 protein is selectively expressed in brain, where high levels were found in cortex, hippocampus, and striatum, with enrichment of the protein at synapses. Additional family members displayed highly distinct mRNA transcript expression patterns within rat brain. The current findings present a mechanism by which PP1 may be directed toward neuronal substrates associated with the actin cytoskeleton.A notable observation arising from the sequencing of mammalian genomes is that the number of predicted Ser͞Thr kinases greatly exceeds that of the predicted Ser͞Thr phosphatases (1, 2). This discrepancy may be accounted for in part by the relatively elaborate regulatory apparatus that exists to promote multifunctional diversity in the activity of major Ser͞Thr phosphatases. Thus, the catalytic cores of these enzymes can be adapted to multiple needs by means of association with large families of regulatory subunits (3-5).Protein phosphatase 1 (PP1) is a ubiquitously expressed enzyme involved in a wide array of physiological processes, including gene expression, muscle contraction, and glycogen metabolism. The role of PP1 in these diverse aspects of cellular physiology has been difficult to dissect by using available inhibitors because of a lack of pharmacological specificity. One approach to identifying specific targets for the enzyme has been to elaborate on the control mechanisms that direct PP1 activity toward specific substrates. This strategy has led to characterization of multiple regulatory subunits, and many of these proteins have been shown to either promote, or to inhibit, PP1 activity toward substrates in specific biochemical settings (6).In the nervous system, PP1 plays a role in the regulation of synaptic plasticity by controlling activity of a broad range of ion channels and signal transduction enzymes (7,8). As in other tissues, the orchestration of PP1 activity toward its various targets in brain is likely to depend on association with diverse regulatory subunits. Some of the neuronal regulatory subunits have been well characterized. Within the basal ganglia and cortical regions, multiple neurotransmitters act through convergent biochemical pathways to reversibly control PP1 activity by means of the regulatory molecule, dopamine-and cAMPregulated phosphoprotein-32 kDa (DARPP-32) (7, 9). A protein structurally related to DARPP-32, inhibitor-1, has been implicated ...