The Caenorhabditis elegans tra-3 gene promotes female development in XX her
maphrodites and encodes an atypical calpain regulatory protease lacking cal
cium-binding EP hands. We report that despite the absence of EF hands, TRA-
3 has calcium-dependent proteolytic activity and its proteolytic domain is
essential for in vivo function. We show that the membrane protein TRA-2A, w
hich promotes XX female development by repressing the masculinizing protein
FEM-3, is a TRA-3 substrate. Cleavage of TRA-PA by TRA-3 generates a pepti
de predicted to have feminizing activity. These results indicate that prote
olysis regulated by calcium may control some aspects of sexual cell fate in
C. elegans.