Oxygen homeostasis represents an essential organizing principle of metazoan evolution and biology. Hypoxia-inducible factor 1 (HIF-1) is a master regulator of transcriptional responses to changes in O₂ concentration. HIF-1 is a heterodimer of HIF-1 and HIF-1 subunits. O₂-dependent degradation of the HIF-1 subunit is mediated by prolyl hydroxylase (PHD), von Hippel-Lindau protein (VHL)/Elongin-C E3 ubiquitin ligase, and the proteasome. O₂-independent degradation of HIF-1 is regulated by the competition of RACK1 and HSP90 for binding to HIF-1. RACK1 binding results in the recruitment of the Elongin-C E3 ubiquitin ligase, leading to VHL-independent ubiquitination and degradation of HIF-1. In this report, we show that calcineurin inhibits ubiquitination and proteasomal degradation of HIF-1. Calcineurin is a serine/threonine phosphatase that is activated by calcium and calmodulin. The phosphatase activity of calcineurin is required for regulation of HIF-1. RACK1 binds to the catalytic domain of calcineurin and is required for HIF-1 degradation induced by the calcineurin inhibitor cyclosporine A. Elongin-C and HIF-1 each bind to RACK1 and dimerization of RACK1 is required to recruit Elongin-C to HIF-1. Phosphorylation of RACK1 promotes its dimerization and dephosphorylation by calcineurin inhibits dimerization. Serine-146 within the dimerization domain is phosphorylated and mutation of serine-146 impairs RACK1 dimerization and HIF-1 degradation. These results indicate that intracellular calcium levels can regulate HIF-1 expression by modulating calcineurin activity and RACK1 dimerization.