The gene (chiD) encoding the precursor of chitinase D was found to be located immediately upstream of the chiA gene, encoding chitinase Al, which is a key enzyme in the chitinase system of Bacillus circulans WL-12. Sequencing analysis revealed that the deduced polypeptide encoded by the chiD gene was 488 amino acids long and the distance between the coding regions of the chiA and chiD genes was 103 bp. Remarkable similarity was observed between the N-terminal one-third of chitinase D and the C-terminal one-third of chitinase Al. The N-terminal 47-amino-acid segment (named ND) of chitinase D showed a 61.7% amino acid match with the C-terminal segment (CA) of chitinase Al. The following 95-amino-acid segment (R-D) of chitinase D showed 62.8 and 60.6% amino acid matches, respectively, to the previously reported type III-like repeating units R-1 and R-2 in chitinase Al, which were shown to be homologous to the fibronectin type III sequence. A 73-amino-acid segment (residues 247 to 319) located in the putative activity domain of chitinase D was found to show considerable sequence similarity not only to other bacterial chitinases and class III higher-plant chitinases but also to Streptomyces plicatus endo-o-N-acetylglucosaminidase H and the Kluyveromyces lactis killer toxin a subunit. The evolutionary and functional meanings of these similarities are discussed.Chitinases are commonly found in a wide range of organisms including bacteria (3, 26, 32), fungi (5, 23), higher plants (2, 24), insects (7, 14), crustaceans (17), and some vertebrates (4). The roles of these chitinases could be divided into several categories. For example, a major role of chitinases found in fungi, crustaceans, and insects is modification of the organism's structural constituent chitin. The production of chitinases by plants is considered to be a part of their defense mechanism against fungal pathogens, which contain chitin as a structural constituent. Bacteria produce chitinase to digest chitin primarily to utilize it as a carbon and energy source. Higher-plant chitinases can be divided into at lease three classes, class I, class II, and class III based on amino acid sequence features (29).Bacillus circulans WL-12 is one of the bacteria which excrete chitinases into culture medium (32). As a first attempt to elucidate the mechanism of chitin degradation by bacteria and the evolution of chitinase genes, we have recently cloned and sequenced the chiA gene, which encodes chitinase Al, the key enzyme in the B. circulans chitinase system, and compared the sequence with those of some other proteins (33). The N-terminal two-thirds of the deduced amino acid sequence of chitinase Al showed a 33% amino acid match to chitinase A of Serratia marcescens (12). In addition, the R-1 and R-2 segments, which are 95-aminoacid tandem repeats in chitinase Al, have been found to be homologous to the so-called type III repeats of firbronectin.