Eukaryotic pyrimidine 5-nucleotidase type 1 (P5N-1) catalyzes dephosphorylation of pyrimidine 5-mononucleotides. Deficiency of P5N-1 activity in red blood cells results in nonspherocytic hemolytic anemia. The enzyme deficiency is either familial or can be acquired through lead poisoning. We present the crystal structure of mouse P5N-1 refined to 2.35 Å resolution. The mouse P5N-1 has a 92% sequence identity to its human counterpart. The structure revealed that P5N-1 adopts a fold similar to enzymes of the haloacid dehydrogenase superfamily. The active site of this enzyme is structurally highly similar to those of phosphoserine phosphatases. We propose a catalytic mechanism for P5N-1 that is also similar to that of phosphoserine phosphatases and provide experimental evidence for the mechanism in the form of structures of several reaction cycle states, including: 1) P5N-1 with bound Mg(II) at 2.25 Å , 2) phosphoenzyme intermediate analog at 2.30 Å , 3) product-transition complex analog at 2.35 Å , and 4) product complex at 2.1 Å resolution with phosphate bound in the active site. Furthermore the structure of Pb(II)-inhibited P5N-1 (at 2.35 Å ) revealed that Pb(II) binds within the active site in a way that compromises function of the cationic cavity, which is required for the recognition and binding of the phosphate group of nucleotides.Eukaryotic pyrimidine nucleotidases are enzymes involved in catabolism of RNA and in the pyrimidine salvage pathway (1, 2). These enzymes catalyze dephosphorylation of pyrimidine mononucleotides to their respective nucleosides. In addition, pyrimidine nucleotidases also possess phosphotransferase activity between pyrimidine mononucleotides and pyrimidine nucleosides (3, 4). Two different subtypes, hP5N-1 2 (UniProt code Q9H0P0) and hPN-2, which differ in their substrate specificities, were identified in human erythrocytes (5-7). Subtype hP5N-1 preferentially dephosphorylates 5Ј-UMP, 5Ј-CMP, and at a lower rate also 5Ј-dCMP, 5Ј-dTMP, and 5Ј-dUMP, whereas hPN-2 preferentially dephosphorylates 3Ј-dTMP, 3Ј-dUMP, and 3Ј-UMP but shows no activity against 5Ј-CMP and 5Ј-dCMP (3,4,8). Both enzymes are essentially inactive against purine nucleotides. This specificity of hPNs is unique among 5Ј-nucleotidases (EC 3.1.3.5), which are typically not discriminatory to the identity of the nucleotide base (9). The specificity of hPNs is crucial in erythrocytes for preservation of the internal pool of ATP/GTP (6). Two types of hP5N-1 deficiency are known: hereditary and acquired. Hereditary deficiency is associated with nonspherocytic hemolytic anemia (NHA) (2, 7, 10). Acquired deficiency results from inhibition of hP5N-1 by Pb(II) during lead poisoning, and its severity is related to the blood levels of Pb(II) (11)(12)(13)(14). Both NHA and severe lead poisoning (Ͼ80 g/dl Pb(II) in blood) have the same clinical manifestation: erythrocytes in blood smears of affected patients show a distinct basophilic stippling upon Wright's staining (7,14,15). At the molecular level, NHA is characterized by signifi...