In most Gram-positive bacteria, serine-46-phosphorylated HPr (PSer-HPr) controls the expression of numerous catabolic genes (Ϸ10% of their genome) by acting as catabolite corepressor. HPr kinase͞phosphorylase (HprK͞P), the bifunctional sensor enzyme for catabolite repression, phosphorylates HPr, a phosphocarrier protein of the sugar-transporting phosphoenolpyruvate/glycose phosphotransferase system, in the presence of ATP and fructose-1,6-bisphosphate but dephosphorylates P-Ser-HPr when phosphate prevails over ATP and fructose-1,6-bisphosphate. We demonstrate here that P-Ser-HPr dephosphorylation leads to the formation of HPr and pyrophosphate. HprK͞P, which binds phosphate at the same site as the  phosphate of ATP, probably uses the inorganic phosphate to carry out a nucleophilic attack on the phosphoryl bond in P-Ser-HPr. HprK͞P is the first enzyme known to catalyze P-protein dephosphorylation via this phosphophosphorolysis mechanism. This reaction is reversible, and at elevated pyrophosphate concentrations, HprK͞P can use pyrophosphate to phosphorylate HPr. Growth of Bacillus subtilis on glucose increased intracellular pyrophosphate to concentrations (Ϸ6 mM), which in in vitro tests allowed efficient pyrophosphatedependent HPr phosphorylation. To effectively dephosphorylate P-Ser-HPr when glucose is exhausted, the pyrophosphate concentration in the cells is lowered to 1 mM. In B. subtilis, this might be achieved by YvoE. This protein exhibits pyrophosphatase activity, and its gene is organized in an operon with hprK.