1. 1. Glucose 6-phosphate can be synthesized directly from 1,3-diphosphoglycerate and glucose in a reaction catalyzed by a liver and kidney microsomal enzyme whose properties resemble those of glucose-6-phosphatase (EC 3.1.3.9) with its accompanying inorganic pyrophosphate-glucose phosphotransferase activity. 2. 2. Specifically labeled radioactive 1,3-[1- 32P]diphosphoglycerate has been prepared and used to show that it is exclusively the acid anhydride phosphate on C-1 of that compound that is transferred to glucose. 3. 3. The possibilities that, in the system used, the glucose 6-phosphate synthesis occurs indirectly from 1,3-diphosphoglycerate by way of 3-phosphoglycerate kinase-catalyzed ATP formation or by way of phosphoglucomutase phosphorylation have been eliminated. 4. 4. Enzymatically catalyzed hydrolysis of 1,3-diphosphoglycerate occurs at 30°C and pH 6.0 in addition to the appreciable spontaneously occurring hydrolysis of the compound. 5. 5. The enzyme activity, like that of glucose-6-phosphatase and related enzyme activities, is greatly increased by pretreatment of the microsomes at about pH 10 or by detergent pretreatment. 6. 6. In activated preparations the pH optimum of the phosphotransferase reaction was 5.2–5.3 and the K m = 1.4 mM for 1,3-diphosphoglycerate and 0.08 M for glucose. 7. 7. Under comparable conditions, 1,3-diphosphoglycerate was 30–50% as effective a donor as PP i in the synthesis of sugar phosphates. Other sugars and sugar alcohols, as well as glycerol can be enzymatically phosphorylated by 1,3-diphosphoglycerate, the relative extent of phosphorylation of each acceptor compound being approximately the same as is observed with PP i as phosphate donor. The enzyme was unable to catalyze the phosphorylation of creatine with either PP i or 1,3-diphosphoglycerate as donor. 8. 8. PP i glucose (glycerol) phosphotransferase was found to be unable to catalyze the introduction of a second phosphate group into glycerol 3-phosphate or glucose 1-phosphate.