Protein phosphatase that negatively regulates PI3K-dependent pathways. Regulates cAMP signal transduction to control territory size. During development, a lawn of Dictyostelium cells breaks up into territories where cells aggregate in dendritic streams to form groups of 20'000 cells. a 1,2-diacyl-sn-glycero-3-phospho-(1D-myo-inositol-3,4,5-trisphosphate) + H2O = a 1,2-diacyl-sn-glycero-3-phospho-(1D-myo-inositol-4,5-bisphosphate) + phosphate Level is low in vegetative cells, increases after starvation, peaks between 5 and 10 hours, and then decreases. Aggregation territories and streams form after 5 to 8 hours of starvation. This pattern of accumulation indicates that cnrN mRNA is present when aggregation territories and streams are forming. Cells lacking cnrN form abnormally small groups, which can be rescued by the expression of exogenous cnrN. They also overaccumulate cAMP during development and form abnormally small fruiting bodies. Five seconds after cAMP stimulation, a prolonged and higher peak of phosphatidylinositol (3,4,5)-trisphosphate is shown compared to wild type cells.