Serine palmitoyltransferase (SPT)， an endoplasmic reticulum-localized membrane enzymecomposed of acatalytic LCB1/LCB2 heterodimer and a small activating subunit (Tsc3 in yeast; ssSPTs in mammals)， is negatively regulated by the evolutionarily conserved family of proteins known as the ORMs. In yeast， SPT， the ORMs， and the PI4P phosphatase Sac1， copurify in the "SPOTs" complex. However， neither the mechanism of ORM inhibition of SPT nor details of the interactions of the ORMs and Sac1 with SPT are known. Here we report that the first transmembrane domain (TMD1) of Lcb1 is required for ORM binding to SPT. Loss of binding is not due to altered membrane topology of Lcb1 since replacing TMD1 with a heterologous TMD restores membrane topology but not ORM binding. TMD1 deletion also eliminates ORM-dependent formation of SPT oligomers as assessed by co-immunoprecipitation assays and in vivo imaging. Expression of ORMs lacking derepressive phosphorylation sites results in constitutive SPT oligomerization， while phosphomimetic ORMs fail to induce oligomerization under any conditions. Significantly， when LCB1-RFP and LCB1ΔTMD1-GFP were coexpressed， more LCB1ΔTMD1-GFP was in the peripheral ER， suggesting ORM regulation is partially accomplished by SPT redistribution. Tsc3 deletion does not abolish ORM inhibition of SPT， indicating the ORMs do not simply prevent activation by Tsc3. Binding of Sac1 to SPT requires Tsc3， but not the ORMs， and Sac1 does not influence ORM-mediated oligomerization of SPT. Finally， yeast mutants lacking ORM regulation of SPT require the LCB-P lyase Dpl1 to maintain long-chain bases at sublethal levels.