The oncogene GOLPH3 is implicated in Golgi size regulation, a function yet to be experimentally linked to its PI4P effector function or the Golgi cisternal maturation in general. Moreover, its yeast homolog, Vps74p is not yet implicated in Golgi size regulation. Our results indicate that VPS74 deletion increases the late Golgi cisternal size and the cisternal maturation frequencies, and destabilizes the Golgi PI4P gradient in budding yeast. Overexpression of Arf1 can suppress this cisternal enlargement and increased maturation frequency phenotype of ∆vps74. ∆arf1 alters Vps74p and PI4P distribution along the Golgi stacks. We conclude that Vps74p, the downstream effector of Arf1, regulates Golgi size by altering its cisternal maturation frequency and by maintaining the PI4P distribution along the Golgi compartments.