The crystal structure of PEP mutase from Mytilus edulis in complex with a substrate-analogue inhibitor, sulfopyruvate S-pyr (K i ) 22 µM), has been determined at 2.25 Å resolution. Mg(II)-S-pyr binds in the R/ barrel's central channel, at the C-termini of the -strands. The binding mode of S-pyr's pyruvyl moiety resembles the binding mode of oxalate seen earlier. The location of the sulfo group of S-pyr is postulated to mimic the phosphonyl group of the product phosphonopyruvate (P-pyr). This sulfo group interacts with the guanidinium group of Arg159, but it is not aligned for nucleopilic attack by neighboring basic amino side chains. Kinetic analysis of site directed mutants, probing the key active site residues Asp58, Arg159, Asn122, and His190 correlate well with the structural information. The results presented here rule out a phosphoryl transfer mechanism involving a double displacement, and suggest instead that PEP mutase catalysis proceeds via a dissociative mechanism in which the pyruvyl C(3) adds to the same face of the phosphorus from which the C(2)O departs. We propose that Arg159 and His190 serve to hold the phosphoryl/metaphosphate/phosphonyl group stationary along the reaction pathway, while the pyruvyl C(1)-C(2) bond rotates upon formation of the metaphosphate. In agreement with published data, the phosphoryl group transfer occurs on the Si-face of PEP with retention of configuration at phosphorus.We examine here the mechanism of phosphoryl transfer in the conversion of PEP 1 to P-pyr catalyzed by PEP mutase (1, 2):This P-C bond forming reaction serves as the entry point to all known phosphonate biosynthetic pathways (3). Despite intense efforts to determine the mechanism of catalysis by this unique enzyme, the pathway for phosphoryl transfer has remained elusive (4-11). A great deal is known about enzymic and nonenzymic phosphoryl transfer mechanisms (for reviews see refs 12-21), and it is against this backdrop that we present the unusual case of PEP mutase.A phosphoryl transfer may proceed via one of the following pathways: (i) dissociative, in which a trigonal metaphosphate intermediate is formed, (ii) concerted, associative transfer, involving a trigonal bipyramidal transition state, (iii) stepwise associative transfer (otherwise known as the addition-elimination pathway), involving a trigonal bipyramidal intermediate. While the concerted reaction is thought to proceed with the phosphoryl group donor and acceptor positioned in-line on the trigonal bipyramid apical positions, for the mechanisms involving intermediates, both in-line and adjacent attacks are possible.The preferred pathway is determined by the nature of the phosphorus electrophile, the nucleophile, and the reaction medium (solvent or enzyme active site) (see for examples, refs 22 and 23). Knowledge of the stereochemistry of the phosphoryl transfer at phosphorus can aid in the determination of which pathway is operative for a given reaction (see for examples refs 17, 18, and 24). The stereochemistry of phosphoryl transfer ...