1. Toxin binds to GM1 ganglioside receptor on cell membrane via B subunits
2. A1 subunit catalyzes ADP ribosylation of Gs regulatory protein, locking it in active state
3. Persistent activation of adenylate cyclase
4. Increased cAMP accumulation along cell membrane
5. Increased secretion of Na+, Cl-, K+, HCO3- and water out of cell into intestinal lumen