Retinoic acid, thyroid hormone, and vitamin D receptors preferentially activate target genes through response elements that consist of direct repeat arrangements of a core recognition motif of consensus sequence AGGTCA. We present evidence that the preference for direct repeat elements arises from two fundamental differences from steroid hormone receptors. First, retinoic acid, thyroid hormone, and vitamin D receptors are demonstrated to preferentially form heterodimers with the retinoid X receptors. These interactions are mediated by the carboxy-terminal dimerization interface, with heterodimer preference specified by actions of the DNA-binding domain. Second, the DNA-binding domains of heterodimeric receptors appear to be rotationally flexible with respect to the carboxy-terminal dimerization interface. Several independent lines of evidence suggest that, relative to the retinoid X and steroid hormone receptors, the DNA-binding domain of the thyroid hormone receptor is preferentially rotated by -180 ~ with respect to its carboxy-terminal dimerization interface. As a result, solution interactions between the carboxy-terminal dimerization interfaces of the retinoid X and thyroid hormone receptors are predicted to lead to the preferential alignment of their respective DNA-binding domains in a direct repeat configuration. This alignment would position the retinoid X receptor over the upstream recognition motif of direct repeat response elements. Differential orientations of the DNA-binding domain, which contribute to the polarity of heterodimer binding, are regulated by a short sequence (the A box) that is located between the conserved DNA-binding and carboxy-terminal dimerization domains.[Key Words: Nuclear receptor heterodimersl DNA-binding domain~ carboxy-terminal dimerization interface] Received April 9, 1993~ revised version accepted May 13, 1993.The thyroid hormone, retinoic acid, and vitamin D receptors [TR, RAR, and VDR, respectively} are members of the nuclear receptor superfamily of ligand-dependent transcription factors that interact with response elements in target genes and thereby control diverse aspects of development and homeostasis (Evans 1988~ Beato 1989~ Glass and Rosenfeld 1991}. A central problem in understanding the actions of these and related nuclear receptors is the elucidation of the molecular mechanisms by which target genes are recognized. Studies of the DNA-binding properties of the TR, RAR, and VDR SCorgesponding author. 6Present address: