The PKC 1 family of related phospholipid-dependent serine/ threonine kinases are involved in the control of many cellular processes, including cell growth and differentiation (1, 2). To date 11 PKC isoforms have been identified: the conventional PKCs (␣,  I ,  II , and ␥), which are regulated by calcium and diacylglycerol, the novel PKCs (␦, ⑀, and ), which are calcium independent but dependent upon diacylglycerol, and the atypical PKCs (, , and ), which are both diacylglycerol-and calcium-independent. Another isoform, PKC, is known as protein kinase D (3).Recent work from many groups has highlighted the importance of phosphorylation in the regulation of PKC activity (4 -7). Initially phospholipid-dependent kinase 1 phosphorylates a conserved site on the lip of the catalytic region that corresponds to Thr 566 in PKC⑀ (8, 9). Phosphorylation at this site is important for the enzymatic activity of PKC (4). Two further phosphorylation sites have been identified in the Cterminal region of the enzyme at the turn and hydrophobic motifs (4 -6). Phosphorylation at the turn motif (Ser 703 in PKC⑀) is believed to be mediated through autophosphorylation (5). There is some debate as to whether the hydrophobic site (Ser 729 in PKC⑀) becomes phosphorylated as a result of autophosphorylation or by a separate kinase. Phosphorylation at this hydrophobic site may be modulated by PKC and appears to be sensitive to rapamycin (10,11). Although phosphorylation at these two C-terminal sites is not essential for the catalytic activity of PKC, they seem to regulate the stability of the enzyme (12-16).PKC⑀ is the only isoform that has oncogenic potential (17, 18) that may be mediated through its interaction with Raf 1 kinase (19,20). PKC⑀ is also unique in having actin and Golgi-binding domains (21-25). PKC⑀ from fibroblasts migrates on SDS-PAGE as two distinct forms, with molecular sizes of 95 and 87 kDa (PKC⑀ 95 and PKC⑀ 87 ) that differ in their intracellular localization. In quiescent cells the PKC⑀ 95 form predominates, whereas after passage PKC⑀ 87 becomes the major species. We have recently reported that these forms differ in their phosphorylation status at Ser 729 (26). Thr 566 and Ser 703 are phosphorylated in both these forms of PKC⑀, and the protein has complete N and C termini (26). The formation of PKC⑀ 87 upon cell passage is not due to new protein synthesis. We have therefore suggested that a phosphatase responsible for dephosphorylation of Ser 729 is activated upon cell passage. Removal of the Ser 729 phosphate from the hydrophobic domain may reduce the stability of the enzyme, rendering it more accessible to phosphatase attack and potentially to degradation (27). Alternatively, the change in localization of PKC⑀ on passage may make it accessible to a Ser 729 phosphatase. Therefore regulation of phosphorylation at Ser 729 may prove to be yet another level of control for PKC.The regulation of how PKC becomes dephosphorylated has not been well studied. Most work has been carried out using TPA to induce activation that ...