Constitutive heterochromatin is that part of the chromosome which does not decondense or unravel during interphase (for a review, see reference 2). It is commonly associated with centromeres and contains large amounts of satellite DNA, a class of highly repetitive DNA composed of tandem arrays of simple sequence repeats (for a review, see references 3, 26, and 47). Constitutive heterochromatin is generally associated with transcriptional inactivity. One indication of this is the low density of major gene loci in constitutive heterochromatin (25). Furthermore, genes translocated to the vicinity of heterochromatin are frequently repressed or variegated. In Drosophila melanogaster, this repression has been correlated with the spread of the condensed state from the heterochromatic region to the translocated euchromatin (29), and the probability of repression has been observed to increase with increasing proximity to the heterochromatin. This type of cis effect is classically referred to as position effect or position effect variegation. A similar phenomenon occurs in mice in which autosomal loci translocated to a heterochromatic X chromosome also are observed to be inactivated (6).The molecular mechanism underlying classical position effects remains obscure. A detailed molecular analysis of genes modulated within heterochromatin may provide insights into this intriguing phenomenon. In the long term, such studies may allow the identification of cis-acting elements which play a role in exerting position effects. In this study, we describe a cell line, LC2-3, which can serve as a valuable model system for such studies. LC2-3 is a cell line derived from thymidine kinase-deficient (tk-) mouse L cells (LMTK-cells) satellite DNA was found to immediately flank these tk inserts and, using the tk DNA as a marker, the adjacent satellite DNA was shown to undergo a high frequency of DNA rearrangements (5), a process which is reminiscent of the known fluidity of satellite DNA. In the current study, we characterized three pairs of tk-revertant and tk+ rerevertant derivatives of LC2-3. Our results indicate that one of the tk genes in LC2-3 is probably not expressed but can be reactivated in association with DNA rearrangements and changes in DNA methylation. Through these and other studies in the future, we hope to obtain insights into the molecular mechanism mediating tk repression and, furthermore, to determine whether and how the flanking centromeric heterochromatin may participate in this proc- 5-AzaC treatments. Treatments with 5-azacytidine (5-azaC) were performed by plating 106 cells into a 100-mm dish containing medium supplemented with 5-azaC at a concentration of 0, 1, 3, or 10 ,uM. Cells were exposed to the nucleotide analog for 2 days and subsequently grown for 2 days in medium without 5-azaC. Cells were then harvested from each dish and replated at a density of 5 x 106 cells per 100-mm dish in HAT medium and 200 cells per 100-mm dish in BrdU medium. After 7 to 10 days of growth, colonies were fixed in methanol-acetic ...