The classical phenomenon of positioneffect variegation (PEV) is the mosaic expression that occurs when a chromosomal rearrangement moves a euchromatic gene near heterochromatin. A striking feature of this phenomenon is that genes far away from the junction with heterochromatin can be affected, as if the heterochromatic state "spreads." We have investigated classical PEV of a Drosophila brown transgene affected by a heterochromatic junction -60 kb away. PEV was enhanced when the transgene was locally duplicated using Ptransposase. Successive rounds of Ptransposase mutagenesis and phenotypic selection produced a series of PEV alleles with differences in phenotype that depended on transgene copy number and orientation. As for other examples of classical PEV, nearby heterochromatin was required for gene silencing. Modifications of classical PEV by alterations at a single site are unexpected, and these observations contradict models for spreading that invoke propagation of heterochromatin along the chromosome. Rather, our results support a model in which local alterations affect the affinity of a gene region for nearby heterochromatin via homology-based pairing, suggesting an alternative explanation for this 65-year-old phenomenon.I N higher eukaryotes, heterochromatin differs from euchromatin in both cytological appearance and sequence organization. Heterochromatin appears relatively condensed during interphase, stains differently from euchromatin at metaphase and participates in nonhomologous associations (HEITZ 1929). The sequences that are found in heterochromatin typically consist of blocks of highly or moderately repetitive DNA with a low abundance of genes. An enigmatic feature of heterochromatin is that when euchromatic genes are moved nearby, they show mosaic expression or positioneffect variegation (PEV) (reviewed by LEWIS 1950; SPOF-FORD 1976; WEILER and WAKIMOTO 1995). PEV is probably not limited to Drosophila, as comparable gene silencing phenomena are seen in mammals (CATTANACH 1974), plants (COCCIOLONE andCONE 1993;MEYER et al. 1993) and yeast (ALLSHIRE et al. 1994(ALLSHIRE et al. , 1995.In PEV, heterochromatin appears to spread into euchromatin in a polar manner (DEMEREC and SLIZYNSKA 1937). Spreading can extend through dozens of genes and span megabases of DNA (WEILER and WAKIMOTO 1995). Investigation of this remarkable action at a distance has driven research on PEV for more than 50years. An early idea was that spreading occurs because homologous pairing interactions between heterochromatic repeats disrupt the structure of the chromosome, affecting nearby genes (EPHRUSSI and SUTTON 1944;HENIKOFF 1994). Later, it was argued that spreading is instead controlled by discrete cisacting elements, including sequences in constitutive heterochromatin that initiate spreading and possibly terminators that limit spreading (EISSENBERG 1989;TARTOF et al. 1989; GRIGLI-ATTI 1991;MOEHRLE and PARO 1994). However, there is no evidence that such elements exist. Moreover, exceptions to the continuity of compac...