The nucleotide sequence encoding the chloroplast enzyme, sedoheptulose-l,7-bisphosphatase [Sed(l,7)P2ase], was obtained from wheat cDNA and genomic clones. The transcribed region of the Sed(1 ,7)P2ase gene has eight exons (72 -507 bp) and seven introns (85 -626 bp) and encodes a precursor polypeptide of 393 amino acids. Comparison of the deduced amino acid sequence of Sed(1 ,7)P2ase with those of fructose-l,6-bisphosphatase [Fru(l ,6)P2ase] enzymes from a variety of sources reveals 19% identity, rising to 42% if conservative changes are considered. Most importantly, the amino acid residues which form the active site of Fru(l,6)P2ase are highly conserved in the Sed(1 ,7)P2ase molecule, indicating a common catalytic mechanism. Interestingly, although the activities of both Sed(1 ,7)P2ase and chloroplast Fru(1 ,6)P2ase are modulated by light via the thioredoxin system, the amino acid sequence motif identified as having a role in this regulation in chloroplast Fru(1 ,6)P2ase is not found in the Sed(l,7)P2ase enzyme.The photosynthetic carbon-reduction cycle is the primary pathway of carbon fixation which in higher plants takes place in the stroma of chloroplasts. This cycle is autocatalytic; in addition to producing substrates for starch and sucrose biosynthesis, it must regenerate the carbon dioxide acceptor, ribulose 1,s-bisphosphate. A balance between the regenerative and export functions is critical, and this is believed to be achieved by mechanisms which regulate the catalytic activity of a number of key enzymes of the cycle. In addition to the constraints imposed by ribulose-1 ,5-bisphosphate carboxylase on the overall rate of carbon flow, three further enzymes, sedoheptulose-1,7-bisphosphatase [Sed(l,7)P2ase], fructose-1,6-bisphosphatase [Fru(l ,6)P2ase] and phosphoribulokinase, have been proposed to have prominent roles in regulating the flow of intermediates (Woodrow and Berry, 1988). The reactions catalysed by these enzymes are essentially irreversible and their activities are stimulated significantly by light (Wirtz et al., 1982).Sed(1 ,7)P2ase catalyses the dephosphorylation of Sed( 1 ,7)Pz, forming sedoheptulose 7-phosphate (Sed7P) and inorganic phosphate, and this is an essentially irreversible reaction which commits intermediates to the regenerative part of the photosynthetic carbon-reduction cycle. The activity of Abbreviotions. Sed(1 ,7)P2ase, sedoheptulose-1.7-bisphosphatase; Fru(l,6)Pzase. fructose-l,6-bisphosphatase; Sed7P, sedoheptulose 7-phosphate; Fru(2,6)P2, fructose 2,6-bisphosphate; Fru6P. fructose 6-phosphate.Enzymes. Sedoheptulose-l,7-bisphosphatase (EC 3.1.3.37); chloroplast fructose-l,6-bisphosphatase (EC 3.1.311 1). sity of Essex,