The synthesis of the lipid carrier undecaprenyl phosphate (C 55 -P) requires the dephosphorylation of its precursor, undecaprenyl pyrophosphate (C 55 -PP). The latter lipid is synthesized de novo in the cytosol and is also regenerated after its release from the C 55 -PP-linked glycans in the periplasm. In Escherichia coli the dephosphorylation of C 55 -PP was shown to involve four integral membrane proteins, BacA, and three members of the type 2 phosphatidic acid phosphatase family, PgpB, YbjG, and YeiU. Here, the PgpB protein was purified to homogeneity, and its phosphatase activity was examined. This enzyme was shown to catalyze the dephosphorylation of C 55 -PP with a relatively low efficiency compared with diacylglycerol pyrophosphate and farnesyl pyrophosphate (C 15 -PP) lipid substrates. However, the in vitro C 55 -PP phosphatase activity of PgpB was specifically enhanced by different phospholipids. We hypothesize that the phospholipids are important determinants to ensure proper conformation of the atypical long axis C 55 carrier lipid in membranes. Furthermore, a topological analysis demonstrated that PgpB contains six transmembrane segments, a large periplasmic loop, and the type 2 phosphatidic acid phosphatase signature residues at a periplasmic location.Undecaprenyl phosphate (C 55 -P) 2 is a 55-carbon-long polyprenol (see Fig. 1). It is an essential bacterial lipid required for the synthesis of various cell wall polymers such as peptidoglycan, lipopolysaccharides, teichoic acids, osmo-regulated periplasmic glucans, capsular polysaccharides, and the enterobacterial common antigen (1-10). C 55 -P is utilized as a carrier lipid that allows the transport of the hydrophilic oligosaccharide precursors across the cytoplasmic membrane toward the periplasm where the elongation of the glycan chains takes place. Accordingly, the precursor is linked to the carrier lipid via a pyrophosphate linkage (C 55 -PP-substrate) through the action of a specific glycosyltransferase at the cytosolic side of the inner membrane; thereafter, the complex is translocated through the membrane by a yet unknown mechanism, and finally, the glycosyl moiety is transferred to the appropriate expanding polymer. De novo synthesis of C 55 -P implicates two enzymatic steps (11, 12); it originates from undecaprenyl pyrophosphate (C 55 -PP), itself being synthesized by successive condensations of eight isopentenyl pyrophosphates (C 5 -PP) with farnesyl pyrophosphate (C 15 -PP) (Fig. 1) catalyzed by the cytosolic UppS enzyme, a cis-prenyl-pyrophosphate synthase (13, 14). The C 55 -PP must then be dephosphorylated to yield the active monophosphate form of the carrier lipid (11). C 55 -PP is not solely generated by de novo synthesis, but it is also released and recycled after the transfer of the oligosaccharide unit to the growing polymer in the periplasm. It is yet unclear on which side of the membrane C 55 -PP dephosphorylation occurs and how the carrier lipid is translocated across the membrane before being reused.The enzymatic dephosphoryl...