The Candida albicans inositol biosynthetic gene and its regulation have been studied. The gene, CalNO1, was cloned on a multicopy vector by complementation of a Saccharomyces cerevisae mutant strain. Southern blot analysis established that the cloned DNA was C. albicans genomic DNA in origin; neither rearrangements nor pseudogenes were evident. Blot hybridization analysis using RNA isolated from C. albicans revealed that a single RNA species (1.8 kilobases) was homologous to the cloned DNA fragment. The steady-state levels of these transcripts were shown to be regulated in response to inositol in the growth media. In addition, the steady-state levels of the RNA encoded by the cloned C. albicans DNA present in S. cerevisiae on a plasmid (YRpCalNO1) were regulated in response to exogenously provided inositol. The cloned C. albicans DNA fragment was shown to restore inositol-1-phosphate synthase activity to a S. cerevisiae mutant strain defective in this enzyme. This activity was also shown to be regulated in response to the presence of inositol in the growth media.