Overexpression of a yeast gene, HAL2, allows the cells to tolerate higher than normal extracellular salt concentrations. HAL2 encodes a 3’(2’)5’-bisphosphate nucleotidase that serves to remove the end products of sulfate transfer during cellular metabolism. The enzyme is inhibited by lithium and sodium and is activated by potassium. Metabolic systems that are sensitive to salt, as well as those governing osmolyte synthesis and ion transport, offer routes by which genetic engineering can be used to improve the tolerance of various organisms to salt.