The yeast genes, GCY1 and RIO1, are transcribed divergently from the 869-base pair intergenic region. GCY1 is inducible by galactose about 25-fold due to Gal4p-binding to a single UAS GAL , whereas RIO1 is constitutively expressed. GCY1 has a TATA box obeying the consensus TATAAA, whereas the RIO1 5-upstream region lacks such a motif. In vitro mutagenesis of the TATA motif of GCY1, on the one hand, and introduction of a TATA-element into the promoter of RIO1, on the other hand, as well as inversion of the intergenic region have revealed that transcription of GCY1 and RIO1 is only regulated by Gal4p when a consensus TATA motif is included in their core promoters but not in its absence. The data imply that only transcription complexes that assemble at a consensus TATA box are compatible with specific transactivators, such as Gal4p. As a result, the adjacent gene is subject to regulated expression. By contrast, if a consensus TATA sequence is absent, the initiation complex does not respond to regulatory transcription factors, and consequently, the respective gene is constitutively transcribed. On the other hand, we show that two blocks of homo-oligomeric (dA⅐dT) sequences do not function as boundary sequences that might confine regulatory action of Gal4p to GCY1.The yeast genome is densely packed with genetic information, and consequently, distances between two genes are relatively short. Frequently, adjacent genes are transcribed divergently from the same intergenic control region. In some cases, the mode of their expression differs, e.g. one gene is expressed in a regulated fashion, whereas the other one is constitutively transcribed. One such example is HIS3 and PET56; HIS3 is induced by a shortage of amino acids, whereas expression of PET56 is unregulated (1). TATA boxes and initiator elements are targets of basal transcription factors (reviewed in Ref. 2). These elements are sufficient for basal transcription. However, specific transactivators, which bind to cis-acting upstream elements, are required for regulated gene expression (reviewed in Ref.3). Regulatory transcription factors act in both orientations and at long distances. Therefore, it seems to be contradictory that transactivator-binding to an intergenic region exclusively influences expression of one gene, whereas the divergently transcribed gene is constitutively expressed. The maintenance of individual gene expression is controversially discussed. Analyses of the HIS3 promoter resulted in the hypothesis that two distinct types of TATA boxes exist: constitutive elements that assemble the basal initiation complex independent of upstream-binding transactivators, and regulatory TATA motifs following the consensus "TATAAA" that are responsive to upstream regulatory elements (4, 5). It was proposed that there are several TATA-binding proteins that associate with either type of TATA motif (4, 6, 7). A heterogeneity of TATA-binding proteins could not yet be found in yeast, and it has been shown that TBP binds to both types of TATAelements (8, 9). However, ...