It is well established that luminal acidification of the endocytic pathway, including the endosome and lysosome/vacuole, is required for associated cellular function (
Mellman et al., 1986 
;
Mellman, 1992 
). Some examples include ligand-receptor dissociation and recycling of surface receptors, lysosome-mediated protein degradation, H
+-driven neurotransmitter loading and pH-dependent recycling of synaptic vesicles (
Buckley et al., 2000 
;
Nishi and Forgac, 2002 
). Similarly, viral pathogen entry and propagation is dependent on the pH gradient across the lumen of the endosome (
Harley et al., 2001 
), and the abnormal lysosomal/endosomal morphologies and associated defective trafficking observed in a subset of lysosomal storage disorders are associated with abnormal changes in luminal pH (
Futerman and van Meer, 2004 
). Pioneering experiments performed by Heuser clearly demonstrated that changes in cellular pH alone severely alter organellar morphology and movement (
Heuser, 1989 
). This phenomenon can be explained by net changes in vesicle trafficking between compartments, as luminal pH can direct vesicle trafficking; thus, elevated pH in the endosome promotes endosome to Golgi vesicle movement (van Weert
et al., 1995 
,
1997 
; also see
Nieland et al., 2004 
). At the molecular level, local increases in pH are believed to be responsible for assembly of vesicle trafficking/sorting machinery in areas of the endosome destined for return to the plasma membrane (
Maranda et al., 2001 
; also see
Zeuzem et al., 1992 
;
Aniento et al., 1996 
). Despite extensive evidence that changes in pH direct trafficking in this pathway, specific molecular mechanisms that control pH itself have not been defined.
The ubiquitous Na
+/H
+ exchangers of the NHE family are associated with cellular pH regulation (
Orlowski and Grinstein, 2004 
). Recent phylogenetic analysis of the NHE family has revealed two distinct subgroups corresponding to plasma membrane and intracellular transporters (
Brett et al., 2005 
). Although derived from a common ancestral gene, emerging evidence indicates that members of the two subgroups are distinct from one another in ion selectivity, kinetic properties, inhibitor sensitivity, and physiological role. The plasma membrane NHE, represented by the mammalian isoforms NHE1–NHE5, have been extensively characterized and implicated in the regulation of cytoplasmic pH, maintenance of cell volume, Na
+ homeostasis, and transepithelial transport of electrolytes. By regulating cytoplasmic pH, these plasma membrane Na
+/H
+ exchangers are involved in numerous pathophysiological processes including hypertension, epilepsy, postischemic myocardial arrhythmia, and regulation of aqueous humor secretion associated with glaucoma (reviewed by
Orlowski and Grinstein, 2004 
). In contrast, much less is known about the properties of the intracellular subgroup despite the recent discovery of numerous candidate genes from plants, model organisms, and higher vertebrates, including human NHE6–NHE9 (reviewed by
Brett et al., 2005 
). The best-studied ortholog is Nhx1, the endosomal Na
+/H
+ exchanger of
Saccharomyces cerevisiae.
Initially, Nhx1 was shown to mediate vacuolar sequestration of Na
+, coupling Na
+ movement to the proton gradient established by the vacuolar H
+-ATPase and thus contributing to salt and osmotic tolerance (
Nass et al., 1997 
;
Nass and Rao, 1999 
). However, further studies in yeast found that its role in cellular physiology was not limited to ion homeostasis, as
nhx1Δ null cells show a “class E”
vacuolar
protein
sorting (VPS) phenotype characterized by enlargement of the late endosomal or prevacuolar compartment and mis-sorting of vacuolar carboxypeptidase Y to the cell surface (
Bowers et al., 2000 
). Supporting evidence for a role in vesicle trafficking came from studies showing that Nhx1 binds to Gyp6, a GTPase-activating protein involved in Ypt6-mediated retrograde traffic to the Golgi (
Ali et al., 2004 
). These studies implicate Nhx1 in vesicular exit from the endosome, although the mechanistic basis for this role remained unclear. In this work, we use novel compartment-specific pH probes in wild-type yeast and null mutants to show that Nhx1 regulates both vacuolar and cytoplasmic pH, in an opposite manner to the V-type H
+-ATPase. We demonstrate that pH changes are linked to vesicle trafficking such that manipulation of compartmental pH by weak acids or bases can simulate or ameliorate trafficking defects, respectively. Finally, we show that although both plasma membrane and endosomal Na
+/H
+ exchangers contribute to ion homeostasis and cytoplasmic pH regulation, Nhx1 uniquely regulates compartmental pH to control traffic. Given the ubiquity of the intracellular NHE and the conservation in vesicle trafficking pathways between yeast and mammalian cells, our findings may be extrapolated to predict a similar role for the intracellular NHE (NHE6–NHE9).