A 3.3-kilobase-pair fragment of Pseudomonas aeruginosa DNA containing the phospholipase C (heat-labile hemolysin) gene was sequenced, and the location of the gene was determined. The gene product contains at its NH2 terminus a 38-amino acid sequence which structurally resembles the signal peptides of other secreted proteins but is unusually long and positively charged (6+). The location of the translation start codon was determined by constructing a series of plasmids in which the promoter of a transcription vector was ligated to Pseudomonas DNA containing deletions at the 5' end of the gene. The plasmids were used to transform Escherichia coli, and the resulting clones were assayed for hemolysin activity. In addition, sizes of truncated proteins produced by mutants with translation terminators introduced at specific sites were analyzed in E. coli maxicells. The gene is transcribed, starting just upstream of the hemolysin gene, as an mRNA of approximately 2,800 bases. Analysis of the nucleotide sequence, analysis of mutants in maxicells, and transcriptional studies indicate that the hemolysin is part of an operon composed of two genes. Phosphate regulation of the operon is at the transcriptional level. The location of the 5' end of the transcript was determined by Si mapping.Phospholipase C (PLC) (phosphatidylcholine cholinephosphohydrolase) from Pseudomonas aeruginosa has been studied from different viewpoints: (i) as a hemolytic toxin that may contribute to the virulence of an opportunistic pathogen (22,23,44), (ii) as a secreted protein (10,12,25,48), and (iii) as a part of the phosphate regulon (13,14,19). Extracellular PLC hemolysins are also produced by organisms such as Clostridium perfringens (alpha toxin) and Staphylococcus aureus (beta toxin). In contrast, there is a different class of bacterial hemolysins produced by S. aureus (alpha toxin), Escherichia coli, and other organisms which are thought to have a nonenzymatic mechanism of action (18).The mechanism of pathogenicity for P. aeruginosa is complex, and the role of the hemolysin is not quite clear. PLC has been implicated as a virulence determinant in the pathogenesis of lung infection (22), and in another study, PLC production by urinary tract isolates was greater than that by lung, blood, or other isolates (4). Liu (23) observed that the PLC hemolysin and alkaline phosphatase are produced together during growth in low Pi and repressed during growth in high P, and proposed that these enzymes function cooperatively as a phosphate-scavenging mechanism. P. aeruginosa plcA mutants have been isolated which are deficient in the production of PLC and several other exported phosphate-repressible proteins (13, 17). Another class of mutants (plcB) hyperproduce most phosphaterepressible proteins and are also altered in Pi transport (14,17).PLC is also interesting for its properties as a secreted protein. The transport of proteins through the inner membrane of bacteria has been extensively studied in E. coli (for recent reviews, see references 33, 36, 41) bu...