The synthesis of 3'-phosphoadenosine-5'-phosphosulfate (PAPS) from inorganic sulfate and ATP requires two enzymes, ATP sulfurylase (SUL) and adenosine-5'-phosphosulfate kinase (KIN). In bacteria, fungi, yeast and plants, the two enzymes are present on separate polypeptide chains. We have identified the first animal gene coding for these enzymes. In the marine worm, Urechis caupo (Uc), both SUL and KIN are present on a single polypeptide chain. This protein, which we call PAPS synthetase (PAPSS), is able to complement yeast mutants lacking either enzyme. The Uc PAPSS mRNA is present in oocytes, but is not translated until after fertilization. At least three adult tissues, gut, ceolomocytes and body wall, also contain the mRNA, but at lower concentrations than are found in embryos. Partial sequences of a similar gene from Caenorhabditis elegans (Ce) were detected in a search of the GenBank expressed sequence tag database. Comparison of these Uc and Ce PAPSS sequences with the sequences of cloned genes from non-animal organisms strongly suggests that the animal genes evolved through the fusion of the SUL- and KIN-encoding genes from lower organisms.