Protein tyrosine phosphatases (PTPases) play critical roles in the int
racellular signal transduction pathways that regulate cell transformat
ion, growth, and proliferation. The structures of several different PT
Pases have revealed a conserved active site architecture in which a ph
osphate-binding loop, together with an invariant arginine, cradle the
phosphate of a phosphotyrosine substrate and poise it for nucleophilic
attack by an invariant cysteine nucleophile. We previously reported t
hat binding of tungstate to the Yop51 PTPase from Yersinia induced a l
oop conformational change that moved aspartic acid 356 into the active
site, where it can function as a general acid. This is consistent wit
h the aspartic acid donating a proton to the tyrosyl leaving group dur
ing the initial hydrolysis step. In this report, using a similar struc
ture of the inactive Cys 403 --> Ser mutant of the Yersinia PTPase com
plexed with sulfate, we detail the structural and functional details o
f this conformational change. In response to oxyanion binding, small p
erturbations occur in active site residues, especially Arg 409, and tr
igger the loop to close. Interestingly, the peptide bond following Asp
356 has flipped to ligate a buried, active site water molecule that a
lso hydrogen bonds to the bound sulfate anion and two invariant glutam
ines. Loop closure also significantly decreases the solvent accessibil
ity of the bound oxyanion and could effectively shield catalytic inter
mediates from phosphate accepters other than water. We speculate that
the intrinsic loop flexibility of different PTPases may be related to
their catalytic rate and may play a role in the wide range of activiti
es observed within this enzyme family.