The enzyme 6-aminohexanoate-dimer hydrolase catalyzes amide synthesis. The yield of this reverse reaction in 90% t-butyl alcohol was found to vary drastically when enzyme mutants with substitutions of several amino acids located at the entrance of the catalytic cleft were used. Movement of the loop region and the flip-flop of Tyr170 generate a local hydrophobic environment at the catalytic center of the enzyme. Here, we propose that the shift of the internal equilibrium between the enzyme-substrate complex and enzyme-product complex by the 'water-excluding effect' alters the rate of the forward and reverse reactions. Moreover, we suggest that the local hydrophobic environment potentially provides a reaction center suitable for efficient amide synthesis. Keywords: 6-aminohexanoate-dimer hydrolase; amide synthesis; inducedfit mechanism; internal equilibrium; x-ray crystallography Abbreviations Ahx, 6-aminohexanoate; Ald, 6-aminohexanoate-linear dimer; Hyb-24, a NylB/NylB 0 hybrid protein constructed from conserved PvuII sites located 24-amino acid residues downstream of the initiation codons (NylB 0 having T3A/P4R/T5S/S8Q/D15G substitutions); Hyb-24DN, Hyb-24 having G181D/H266N substitutions; Hyb-24DNY, Hyb-24DN having D370Y substitution; Hyb-S4M94, Hyb-24 having A61V/A124V/R187S/ F264C/G291R/G338A/D370Y substitutions; NylB, 6-aminohexaoate-dimer hydrolase; NylB 0 , a carboxylesterase with 88% homology to NylB encoded on plasmid pOAD2.