Part of heterodimeric inhibin, inhibin-is crucial for mammalian ovarian function. Regulation of inhibin-expression in granulosa cells is both endocrine, primarily by follicle-stimulating hormone (FSH), and paracrine, primarily by members of the transforming growth factor (TGF-) superfamily. Smad proteins transmit TGF-signals to the nucleus, but the cooperating transcription factors involved in inhibin-promoter activation remain unknown. Transcription factor GATA-4 regulates inhibin-in gonadal cells, and the FSH cascade activates GATA-4. We hypothesized that the TGFsignalling cascade and GATA-4 also cooperate to regulate inhibin-expression. In KK-1 granulosa tumour cells, which resemble normal granulosa cells and express inhibin-, we found that TGF-upregulated GATA-4 expression. Transient transfection experiments in KK-1 cells demonstrated that dominant negative GATA-4 variants or mutations of GATA-binding sites in the inhibin-promoter attenuated TGF--induced gene activation. In GATA-4-deficient COS-7 cells, TGF-enhanced the expression of the inhibin-promoter only in the presence of exogenous GATA-4. Smad3, but not Smad2, cooperated with GATA-4 in the transcriptional activation of the inhibin-promoter, and immunoprecipitation experiments in KK-1 cells revealed a physical Smad3:GATA-4 interaction. Our data suggest that GATA-4, interacting with Smad3, is a cofactor for TGF-signalling to activate inhibin-in granulosa cells.