A clone from an Aspergillus nidulans library was identified by its ability to confer enhanced staining for acid phosphatase (APase) activity upon phosphatase-deficient A. nidulans mutants. This APase activity is not repressed by high phosphate concentrations in the medium. The 2.9-kb nucleotide sequence in the region of the clone responsible for the effect reveals two potential protein-coding genes with a common N terminus. One corresponds to an open reading frame (ORF) with no introns, encoding 330 amino acids (aa). The other, shorter gene encoding 113 or 117 aa has the first 65 or 69 codons in common with the long ORF; then, after a single 165-nt intron with a fungal consensus lariat sequence and splice junctions, there are a further 48 codons in a different reading frame. Both correspond in sense direction, and the shorter gene in length, with the only detectable transcript in this region, but both differ from all known APase sequences. The possible identity of these ORFs with the pacG gene is discussed.