In Drosophila melanogaster, achaete (ac) and m8 are model basic helix-loop-helix activator (bHLH A) and repressor genes, respectively, that have the opposite cell expression pattern in proneural clusters during Notch signaling. Previous studies have shown that activation of m8 transcription in specific cells within proneural clusters by Notch signaling is programmed by a "combinatorial" and "architectural" DNA transcription code containing binding sites for the Su(H) and proneural bHLH A proteins. Here we show the novel result that the ac promoter contains a similar combinatorial code of Su(H) and bHLH A binding sites but contains a different Su(H) site architectural code that does not mediate activation during Notch signaling, thus programming a cell expression pattern opposite that of m8 in proneural clusters.In Drosophila melanogaster neurogenesis, the proneural basic helix-loop-helix activator (bHLH A) genes are initially expressed in clusters of adjacent cells called "proneural clusters" (Fig. 1A). Although each cell within the proneural cluster has the potential to adopt a neural cell fate, only one cell or a few cells within the cluster become a neural precursor cell (NPC). Subsequently, the expression of both the proneural bHLH A genes and several putative downstream "panneural" target genes are strongly upregulated in the NPC. In contrast, the expression of proneural and panneural gene is not upregulated in the non-NPCs.Notch signaling-mediated lateral inhibition is critical for repression of proneural bHLH A gene expression in the nonNPCs. Several effector genes for the lateral inhibition pathway in proneural clusters are in the Enhancer of split Complex [E(spl)-C]. The E(spl)-C bHLH repressor (bHLH R) genes (m3, m5, m7, m8, m␥, and m␦) are well-characterized effector genes for Notch signaling (4), and the E(spl)-C m4 and m␣ Bearded-like (Brd-like) genes have also been proposed to mediate lateral inhibition (2). The bHLH R proteins can repress proneural gene expression by binding to R sites in proneural gene regulatory regions (33,34,40) as well as physically interacting with the proneural proteins and blocking proneural autoactivation (15, 16). The Brd-like proteins physically interact with the Neuralized panneural protein and modulate intracellular processing of the Notch signaling ligand Delta (2).Activation of E(spl)-C gene transcription in proneural clusters is initially inhibited by a "default repression" mechanism that is mediated by the bifunctional protein Suppressor of Hairless [Su(H); also called CSL], which binds to S DNA binding sites (3,5,21,28). In the absence of Notch signaling, Su(H) mediates repression of these genes by recruiting specific corepressors, including Hairless (H), Groucho (Gro), and dCtBP ( Fig. 1B) (3, 30). However, once the NPC is established in proneural clusters, the Notch receptor becomes selectively activated in the non-NPCs, and Su(H)-mediated repression of the E(spl)-C genes in the non-NPCs is relieved. This derepression is due to the cleaved Notch intracellular d...