The PHO81 gene product is a positive regulatory tactor required tor th
e synthesis of the phosphate repressible acid phosphatase (encoded by
the PHO5 gene) in Saccharomyces cerevisiae. Genetic analysis has sugge
sted that PHO81 may be the signal acceptor molecule; however, the bioc
hemical function of the PHO81 gene product is not known. We have clone
d the PHO81 gene and sequenced the promoter. A PHO81-LacZ fusion was s
hown to be a valid reporter since its expression is regulated by the l
evel of inorganic phosphate and is controlled by the same regulatory t
actors that regulate PHO5 expression. To elucidate the mechanism by wh
ich PHO81 functions, we have isolated and cloned dominant mutations in
the PHO81 gene which confer constitutive synthesis of acid phosphatas
e. We have demonstrated that overexpression of the negative regulatory
tactor, PHO80, but not the negative regulatory tactor PHO85, partiall
y blocks the constitutive acid phosphatase synthesis in a strain conta
ining a dominant constitutive allele of PHO81. This suggests that PHO8
1 may function by interacting with PHO80 or that these molecules compe
te tor the same target.