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TeaABC from the halophilic bacterium Halomonas elongata belongs to the family of tripartite ATP-independent periplasmic (TRAP) transporters. It facilitates the uptake of the compatible solutes ectoine and hydroxyectoine which protect the cell from dehydration by accumulating in the cytoplasm during hyperosmotic stress. It is the only known TRAP transporter activated by osmotic stress. Ectoine and hydroxyectoine accumulation in H. elongata is regulated by the cytoplasmic universal stress protein TeaD. The gene encoding TeaD is located in the same operon as the TeaABC gene. TeaD regulates the cellular homeostasis of ectoine possibly by interacting directly or indirectly with TeaABC. All subunits of TeaABC and TeaD were expressed in E. coli and purified. With TeaD and the solute binding protein (SBP) TeaA high levels of expression suitable for crystallization could be obtained and their 3D structures solved. The small transmembrane protein TeaB and the transporter TeaC showed only moderate and low levels of expression respectively. Functional analysis on TeaA was performed using Isothermal Titration Calorimetry. The measurements demonstrate that TeaA is a high affinity ectoine-binding protein (Kd = 0.19 _M) that also has a significant affinity for hydroxyectoine (Kd = 3.8 _M). The structure of TeaA was solved using ab initio phase determination by MAD (multiple anomalous dispersion). TeaA structures were determined in three conformations: TeaA alone, TeaA in complex with ectoine and TeaA in complex with hydroxyectoine. The resolutions of the structures were 2.2, 1.55 and 1.80 Å, respectively. These represent the first structures of an osmolyte SBP associated to a TRAP transporter. The structures reveal similar ligand binding compared to osmolyte SBPs of ABC transporter pointing to coevolution of the ligand binding modes. Moreover, unique features such as the solvent-mediated specific binding of the ligands ectoine and hydroxyectoine could be observed for TeaA. The structure of TeaD in complex with its cofactor ATP was solved by molecular replacement at a resolution of 1.9 Å. Comparison with other structures of universal stress proteins shows striking oligomerization and ATP binding in TeaD. In conclusion, this work presents the first detailed analysis of the molecular mechanisms underlying ligand recognition of an osmoregulated transporter from the TRAP-transporter family.