Prepro-orexin is a precursor of the neuropeptides orexin-A and -B, which are localized in the neuronal population of the lateral hypothalamic area (LHA). We wished to elucidate the mechanisms by which the prepro-orexin gene is specifically activated in orexin neurons in the LHA. The 3.2-kb 5-flanking region of the human prepro-orexin gene is sufficient for the specific expression of an Escherichia coli lacZ reporter gene in orexin neurons. Therefore, we examined a series of reporter constructs harboring this 3.2-kb regulatory region or its deletion in a reporter transgenic mouse assay. There are two phylogenetically conserved regions located 287 bp (orexin regulatory element (OE) 1) and 2.5 kb (OE2) upstream of the transcription initiation site of the human prepro-orexin gene. In transgenic mice, both OE1 and OE2 are necessary for expressing the human prepro-orexin gene in the LHA and for repressing its expression in the medial regions of the hypothalamus. Through serial deletion analysis of OE1, we found that the 57-bp core region of OE1 is critical for its spatial gene regulatory function in vivo. Mutation analysis further demonstrated that without contribution from the OE1 core region, the lacZ reporter is expressed ectopically in the medial regions of the hypothalamus. Thus, OE1 contains crucial cis-acting elements regulating prepro-orexin gene expression specifically in the LHA.Regulation of food intake and energy homeostasis takes place mainly in the medial regions of the hypothalamus, where many of the necessary neuropeptides exist (1, 2). In the mediobasal hypothalamus, the arcuate nucleus (ARC) 1 houses neurons expressing neuropeptide Y, ␣-melanocyte-stimulating hormone, and agouti-related peptide, which are critical in modulating body weight and metabolism (3, 4). Several lateral hypothalamic neuropeptides controlling the regulation of energy balance and food intake have also been identified (5). For instance, orexin-A (hypocretin-1) and orexin-B (hypocretin-2) and their common precursor peptide prepro-orexin are specifically localized in neurons located in the lateral hypothalamic area (LHA), a region classically regarded as the "feeding center" (6 -8). These neuropeptides are ligands for two closely related orphan G-protein-coupled receptors, OX1r and OX2r (8, 9). OX1r is selective for orexin-A, whereas nonspecific OX2r binds both isopeptides. In rats, intracerebroventricular administration of orexins stimulates food consumption, whereas the expression level of mRNA is up-regulated by fasting (8) and decreased in genetically obese ob and db mice (10). The expression level of the prepro-orexin gene is regulated by leptin and orexin-containing neurons express the leptin receptor (11).It is believed that orexins also play roles in regulating states of arousal, sleep, and wakefulness. For example, it was reported that targeted disruption of the mouse prepro-orexin gene results in a sleeping disorder strikingly similar to human narcolepsy (12). Furthermore, mutations of the OX2 gene were found in a canine...