Lipid phosphate phosphatases (LPPs) regulate cell signaling by modifying the concentrations of lipid phosphates versus their dephosphorylated products. The ecto-activity regulates the availability of extracellular lysophosphatidate (LPA) and sphingosine 1-phosphate (S1P) and thereby signaling by their respective receptors. LPP products (monoacylglycerol or sphingosine) are taken up by cells and rephosphorylated to produce LPA and S1P, respectively, which activate intracellular signaling cascades. The proposed integrin binding domain on the external surface of LPP3 modifies cell/cell interactions. Expression of LPPs on internal membranes controls signaling depending on the access of lipid phosphates to their active sites. Different LPPs perform distinct functions, probably based on integrin binding, their locations, and their abilities to metabolize different lipid phosphates in vivo.