A segment of 1,022 base pairs (bp) of the 5'-flanking region of the human albumin gene, fused to a teporter gene, directs hepatoma-specific transcription. Three functionally distinct regions have been defined by deletion analysis: (i) a negative element located between bp -673 and -486, (ii) an enhancer essential for efficient albumin transcription located between bp -486 and -221, and (iii) a promoter spanning a region highly conserved throughout evolution. Protein-binding studies have demonstrated that a liver trans-acting factor which interacts with the enhancer region is the well-characterized transcription factor LF-B1, which binds to promoters of several liver-specific genes. A synthetic oligodeoxynucleotide containing the LF-Bl-binding site is sufficient to act as a tissue-specific transcriptional enhancer when placed in front of the albumin promoter. The fact that the same binding site functions in both an enhancer and a promoter suggests that these two elements influence the initiation of transcription through similar mechanisms.Gene activity in higher eucaryotes is regulated largely at the level of transcription initiation (see references 30 and 53 for reviews). This cis-acting regulatory sequences involved in the activation of transcription are usually distinguished in promoters and enhancers. The former is made up of a cluster of cis-acting elements located immediately upstream of the initiation site and is generally defined as the minimal DNA segment capable of directing transcription. Enhancers are defined as DNA sequences able to activate transcription over and above that observed with the promoter alone and can exert their effect in a position-and orientation-independent fashion. Recently, however, the distinction between promoters and enhancers has become less sharp. Both are modular units containing common and/or distinct short DNA motifs which are binding sites for trans-acting factors and have a specific role in tissue specificity or a general enhancement of transcription (see references 24 and 36 for reviews).Serum albumin is the major protein synthesized by liver cells, and its concentration increases from low levels early in fetal development to a high plateau level in adulthood. Other organs such as the thyroid gland and the gastrointestinal tract produce trace amount of albumin. High levels of albumin are also found in the yolk sac during fetal life. The human albumin gene, which is expressed in a tissue-specific and temporally regulated manner during development, represents a good model for studying cell-specific gene control.The tissue specificity of albumin synthesis appears to be regulated mainly at the level of transcription initiation (9, 41). Transient-expression experiments and in vitro transcription assays on rodent albumin promoters have shown that the DNA sequences necessary and sufficient for hepatocytespecific transcription are located within the 150 base pairs (bp) immediately upstream from the cap site (17, 38). However, additional sequences may be required for transcripti...