The DNA-binding ETS transcription factor Spi-1/PU.1 is of central importance in determining the myeloid-erythroid developmental switch and is required for monocyte and osteoclast differentiation. Many monocyte genes are dependent upon this factor, including the gene that codes for interleukin-1. It has long been known that the conserved ETS DNA-binding domain of Spi-1/PU.1 functionally cooperates via direct association with a diverse collection of DNA-binding proteins, including members of the basic leucine zipper domain (bZIP) family. However, the molecular basis for this interaction has long been elusive. Using a combination of approaches, we have mapped a single residue on the surface of the ETS domain critical for protein tethering by the C/EBP carboxylterminal bZIP domain. This residue is also important for nuclear localization and DNA binding. In addition, dependence upon the leucine zipper suggests a novel mode for both protein-DNA interaction and functional cooperativity.The ETS family of transcription factors serves a variety of roles in development and differentiation (1). A highly conserved DNA-binding domain (DBD) 3 defines the family. Spi-1/PU.1 (Spi-1), one of the most diverse members, is critical for myeloid and B cell differentiation and function (2-6). It also regulates the expression of many effector genes, including IL1B, coding for the IL-1 protein (7). The Spi-1 molecule possesses a mutipartite transactivation domain (TAD) consisting of the amino half of the molecule that binds TBP, RB (8), and CBP/p300 (9) (Fig. 1a). The carboxyl end of the TAD contains a phosphorylatable PEST sequence that aids in the formation of a protein-protein interaction with transcription factors 11). Located at the COOH-terminal end of the protein is the ETS DBD. Besides DNA binding, this domain is also a tethering site for multiple transactivators, some of which occur at composite DNA-binding sites (reviewed in Ref. 12), and contains the previously coarsely mapped nuclear localization signal (NLS) (13). The structure of the Spi-1 DBD, like other ETS factors, consists of 85 conserved residues folded into a winged-helix-turn-helix (wHTH) conformation (14) (Fig. 1b). Two arginines, which are solventexposed in helix ␣3, are conserved in all ETS family members and form direct and indirect hydrogen bonds to a core DNA sequence of A/GGAA in Spi-1 (1, 7, 15). The Spi-1 DBD is 98% conserved at the amino acid level between mouse and human, suggesting stringent structural and functional requirements.Spi-1 plays a necessary role in the regulation of the IL1B promoter by cooperating functionally with C/EBP, a basic leucine zipper (bZIP) family member (16,17). This cooperativity may be derived, in part, by a physical interaction between the DBD of both molecules and the two composite DNA-binding sites in the IL1B promoter (Fig. 2a) (18). The downstream TATA-proximal site binds relatively well to Spi-1 but weakly to C/EBP (7). C/EBP DNA binding at this site appears to be supported by a protein interaction with the adjace...