Histone deacetylases such as human HDAC1 and yeast RPD3 are trichostatin A (TSA)-sensitive enzymes that are members of large, multiprotein complexes. These contain specialized subunits that help target the catalytic protein to histones at the appropriate DNA regulatory element, where the enzyme represses transcription. To date, no deacetylase catalytic subunits have been shown to have intrinsic activity, suggesting that noncatalytic subunits of the deacetylase complex are required for their enzymatic function. In this paper we describe a novel yeast histone deacetylase HOS3 that is relatively insensitive to the histone deacetylase inhibitor TSA, forms a homodimer when expressed ectopically both in yeast and Escherichia coli, and has intrinsic activity when produced in the bacterium. Most HOS3 protein can be found associated with a larger complex in partially purified yeast nuclear extracts, arguing that the HOS3 homodimer may be dissociated from a very large nuclear structure during purification. We also demonstrate, using a combination of mass spectrometry, tandem mass spectrometry, and proteolytic digestion, that recombinant HOS3 has a distinct specificity in vitro for histone H4 sites K5 and K8, H3 sites K14 and K23, H2A site K7, and H2B site K11. We propose that while factors that interact with HOS3 may sequester the catalytic subunit at specific cellular sites, they are not required for HOS3 histone deacetylase activity.acetylation ͉ mass spectrometry W e previously have identified a yeast (Saccharomyces cerevisiae) histone deacetylase HDA1 (1) that was found to have similarity to four other histone deacetylases, RPD3, HOS1, HOS2, and HOS3, inferred from the yeast genome database (2). Of these enzymes, RPD3 is homologous to a mammalian histone deacetylase subunit, HDAC1 (3), that is recruited in a multiprotein complex (4) to various regulatory DNA sequences, such as Mad-Max binding sites, to repress adjacent genes (5, 6). This involves proteins such as mSIN3 and p48, which interact with repressor proteins and histones, respectively (5-7). Similar mechanisms are involved in repression by the unliganded thyroid hormone receptor (8), retinoblastoma protein (9-11), notch protein (12), and other proteins (13-15). In certain HDAC complexes (e.g., Mi2), ATPases are also implicated in histone deacetylase function (16)(17)(18). Surprisingly, although HDAC1 binds small-molecule deacetylase inhibitors such as trichostatin A (19), apicidin (20), and trapoxin (3), it has not yet been shown that HDAC-like proteins have intrinsic deacetylase activity. This suggests that other proteins in the HDAC complex are required for activity of the catalytic subunit.In yeast, the RPD3 deacetylase is also found in a large, multiprotein complex even after extensive enzyme purification (2,21,22). This trichostatin A (TSA)-sensitive enzyme complex is targeted by SIN3 to UME6-regulated genes in a manner similar to that involving Mad-Max (23). Other yeast histone deacetylases that include HDA1, HOS1, and HOS2 are also found in large comple...