We cloned and sequenced the cDNA and the gene encoding the catalytic subunit of protein phosphatase 1 from the filamentous fungus Neurospora crassa. The gene, designated ppp-1 (phosphoprotein phosphatase 1), was mapped by restriction fragment length polymorphism to linkage group III, in the vicinity of con-7 and trp-1. The expression of the gene was monitored by reverse transcriptase and polymerase chain reactions, by Western blotting, and by protein phosphatase activity assays in synchronized cultures. Transcripts of ppp-1 were detected in the dormant conidia. The abundance of ppp-1 mRNA, Ppp-1 protein, and the activity of protein phosphatase 1 increased during germination and subsequent hyphal elongation as well as during the early stages of aerial mycelium formation.