Schizosaccharomyces pombe 5 and Ser 2 undergo waves of phosphorylation and dephosphorylation during the transcription cycle, the purpose of which may be to regulate the transition from initiation to elongation modes and to control the recruitment, activity, and egress of the various mRNA-processing machines that act on the nascent transcript (1-3). The dynamic phosphorylation state of the CTD reflects a kinetic balance between the multiple CTD kinase and CTD phosphatase activities found in eukaryotic cells (2, 4 -7).The enzyme Fcp1 is the major protein serine phosphatase responsible for removing phosphates from the CTD (2, 8 -16). Fcp1 orthologs are present in all known eukaryal proteomes, and the enzyme is essential for cell viability in budding and fission yeast (10,15 Fig. 1) and a C-terminal BRCT (BRCA1 C terminus) domain, both of which are essential for Fcp1 phosphatase activity in vivo and in vitro (14,16,19). Although the catalytic contributions made by the BRCT domain are not known, a recent report implicates the BRCT domain in the initial binding of Fcp1 to the phosphorylated CTD (20). A wealth of data implicate the FCPH domain as the seat of the phosphatase active site.A short conserved peptide motif ( 170 DLDQT 174 in S. pombe Fcp1) located near the N-terminal margin of the FCPH domain corresponds to the signature sequence of the DXDX(T/V) family of metal-dependent phosphohydrolases and phosphotransferases (21-23) (Fig. 1). DXDX(T/V) enzymes act via an acylphosphoenzyme intermediate in which the phosphate is linked to the first aspartate in the DXDX(T/V) motif (21, 24 -26). The second aspartate in the DXDX(T/V) motif serves as a general acid catalyst that donates a proton to the leaving group during formation of the acyl-phosphate intermediate. Formation and hydrolysis of the acyl-phosphoenzyme proceed via an associative mechanism through a pentacoordinate phosphorane transition state (27). Insights to the identity of the catalytic functional groups on the enzyme have emerged from crystallographic snapshots of DXDX(T/V) acyl-phosphatases captured at defined stages of the reaction cycle (25,27,28) and from mutational analyses of exemplary DXDX(T/V) family members, including Fcp1.We previously employed site-directed mutagenesis to locate candidate catalytic residues of S. pombe Fcp1 (16,18