The physiological state of the cell is controlled by signal transduction me
chanisms which regulate the balance between protein kinase and protein phos
phatase activities(1). Here we report that a single protein can, depending
on which particular amino-acid residue is phosphorylated, function either a
s a kinase or phosphatase inhibitor. DARPP-32 (dopamine and cyclic AMP-regu
lated phospho-protein, relative molecular mass 32,000) is converted into an
inhibitor of protein phosphatase 1 when it is phosphorylated by protein ki
nase A (PKA) at threonine 34 (refs 2, 3), We find that DARPP-32 is converte
d into an inhibitor of PKA when phosphorylated at threonine 75 by cyclin-de
pendent kinase 5 (Cdk5), Cdk5 phosphorylates DARPP-32 in vitro and in intac
t brain cells. Phospho-Thr 75 DARPP-32 inhibits PKA in vitro by a competiti
ve mechanism. Decreasing phospho-Thr 75 DARPP-32 in striatal slices, either
by a Cdk5-specific inhibitor or by using genetically altered mice, results
in increased dopamine-induced phosphorylation of PKA substrates and augmen
ted peak voltage-gated calcium currents. Thus DARPP-32 is a bifunctional si
gnal transduction molecule which, by distinct mechanisms, controls a serine
/threonine kinase and a serine/threonine phosphatase.