The structural gene for a putative PPP family proteinserine/threonine phosphatase from the microcystin-producing cyanobacterium Microcystis aeruginosa PCC 7820, pp1-cyano1, was cloned. The sequence of the predicted gene product, PP1-cyano1, was 98% identical to that of the predicted product of an open reading frame, pp1-cyano2, from a cyanobacterium that does not produce microcystins, M. aeruginosa UTEX 2063. By contrast, PP1-cyano1 displayed less than 20% identity with other PPP family protein phosphatases from eukaryotic, archaeal, or other bacterial organisms. PP1-cyano1 and PP1-cyano2 were expressed in Escherichia coli and purified to homogeneity. Both enzymes exhibited divalent metal dependent phosphohydrolase activity in vitro toward phosphoserine-and phosphotyrosine-containing proteins and 3-phosphohistidine-and phospholysine-containing amino acid homopolymers. This multifunctional potential also was apparent in samples of PP1-cyano1 and PP1-cyano2 isolated from M. aeruginosa. Catalytic activity was insensitive to okadaic acid or the cyanobacterially produced cyclic heptapeptide, microcystin-LR, both potent inhibitors of mammalian PP1 and PP2A. PP1-cyano1 and PP1-cyano2 displayed diadenosine tetraphosphatase activity in vitro. Diadenosine tetraphosphatases share conserved sequence features with PPP family protein phosphatases. The diadenosine tetraphosphatase activity of PP1-cyano1 and PP1-cyano2 confirms that these enzymes share a common catalytic mechanism.Strains of the cyanobacterium Microcystis aeruginosa sp. synthesize the cyclic heptapeptide microcystin-LR, a potent toxin toward humans and other animals (1, 2). In eukaryotes, the immediate targets of microcystin-LR are the structurally homologous catalytic subunits of the protein-serine/threonine phosphatases PP2A and PP1 1 (3), to which it binds with nanomolar or near nanomolar affinity, respectively (4). Sensitivity to these and other toxins, such as okadaic acid, is so highly conserved among eukaryotic PP1 and PP2A that it serves as a criterion for the identification of these enzymes in cell extracts (5). Moderate sensitivity to microcystin-LR extends to homologs recently identified in members of the Archaea such as Methanosarcina thermophila TM-1 (6, 7) and Pyrodictium abyssi TAG11 (8).Recently, the presence of open reading frames potentially encoding PP1/2A-like, also known as the PPP family (9), protein phosphatases has been reported in two strains of M. aeruginosa, the microcystin-producing strain M. aeruginosa PCC 7820 and the non-producing strain M. aeruginosa UTEX 2063 (10). These open reading frames have been designated pp1-cyano1 and pp1-cyano2, respectively. Given the observation that microcystins accumulate within the interior of toxin-producing cyanobacteria (11), and the near absolute conservation of sensitivity to these compounds by members of the PP1/2A superfamily (5), how do microcystin-producing cyanobacteria protect themselves from the action of endogenous toxins against their presumptive PP1/ 2A-like protein phosphatases? It ...