Pseudomonas aeruginosa is a ubiquitous, Gram-negative bacterium that forms biofilms and is responsible for antibiotic-resistant nosocomial infections in humans. The P. aeruginosa BqsRS two-component system (TCS) regulates biofilm formation and dispersal by sensing extracytoplasmic Fe2+, but the mechanistic details of this process are poorly understood. In this work, we report the crystal and solution structures of the PaBqsR response regulator (RR) receiver domain (RD), comprising a ({beta})5 response regulator assembly, and DNA-binding domain (DBD), comprising a winged helix-turn-helix motif. Consistent with its cognate stimulus being Fe2+, we show that PaBqsR binds directly to the promoter region of the feo operon that encodes the bacterial Fe2+ transport system Feo. Transcriptional studies show that PaBqsR is a global regulator that negatively controls the feo operon, and deletion of bqsR provides a growth advantage of PAO1 in the presence of Fe2+ as its only iron source. Surprisingly, X-ray absorption spectroscopy (XAS) shows that recombinant PaBqsR binds a single Fe2+ ion in a His-rich site, divergent from other members of the OmpR-like family. These exciting results reveal that the BqsRS system controls Fe2+ acquisition in P. aeruginosa and suggest that this system may be an attractive future therapeutic target to treat nosocomial infections.