The N-terminal regulatory region of the high affinity cAMP-specific phosphodiesterase, PDE7A1, contains two copies of the cAMPdependent kinase (PKA) pseudosubstrate site RRGAI. In TC3 insulinoma cells, PDE7A1 co-localizes with PKA II in the Golgicentrosome region. The roles PDE7A1 and its regulatory region play in cAMP signaling were examined by studying interactions with PKA subunits. PDE7A1 associates with the dissociated C subunit of PKA (C), but does not bind tetrameric PKA holoenzyme. High affinity binding of C by PDE7A1 inhibits kinase activity in vitro (IC 50 ؍ 0.5 nM). The domain containing PKA pseudosubstrate sites at the N terminus of PDE7A1 mediates complex formation with C. The PDE7A1 N-terminal repeat region inhibits C activity in CHO-K1 cells and also suppresses C dependent, cAMP-independent, physiological responses in yeast. Thus, PDE7A1 possesses a non-catalytic activity that can contribute to the termination of cAMP signals via direct inhibition of C. This study identifies a novel inhibitor of PKA and a non-catalytic affect of a cyclic nucleotide phosphodiesterase.Cyclic AMP (cAMP) is a second messenger that mediates diverse cellular responses to hormones and neurotransmitters. Cyclic AMP levels are regulated by rates of adenylyl cyclase-catalyzed synthesis and phosphodiesterase (PDE) 2 -mediated hydrolysis. Several targets for cAMP are known: cAMP-dependent protein kinases (PKAs), cAMP-activated guanine nucleotide exchange factors, and ion channels (1-4). PKAs phosphorylate multiple substrates and thereby regulate a broad range of physiological processes including gene expression via CREB/ATF and co-stimulatory transcription factors, glycogenolysis, lipolysis, catecholamine biosynthesis, synaptic transmission, and ion channel/transporter activities (1, 2, 5-7). PKA activity is stimulated by binding of cAMP to the regulatory subunits of inactive, tetrameric PKA complexes, and the consequent dissociation of active catalytic subunits. Free catalytic subunit (C) phosphorylates PKA substrates including nuclear targets. During interphase, the vast majority of PKA regulatory subunits and tetrameric complexes are excluded from the nucleus. A substantial proportion (principally PKA II) can be tethered to specific subcellular sites via interactions with anchor proteins (8). Subcellular targeting of PKA is often required for efficient transduction of cAMP signals (9). Down-regulation of PKA activity is achieved via PDE-mediated degradation of cAMP, dissociation of ligands from receptors, receptor desensitization, inhibitory G proteins, GTPase-activating proteins, holoenzyme reassociation, C degradation, compensatory expression of PKA regulatory subunit, and direct inhibition by the PKA inhibitor, PKI (10 -15). In addition to directly inhibiting catalytic activity, PKI also promotes export of C from the nucleus (16 -18).PKA regulatory subunits and PKI bind to C with high affinity (1, 2). The hinge regions of the type I and type II regulatory subunits of PKA interact with the catalytic cleft of C via the...