The essential process of dosage compensation equalizes X-chromosome gene expression between Caenorhabditis elegans XO males and XX hermaphrodites through a dosage compensation complex (DCC) that is homologous to condensin. The DCC binds to both X chromosomes of hermaphrodites to repress transcription by half. Here, we show that posttranslational modification by the SUMO (small ubiquitin-like modifier) conjugation pathway is essential for sex-specific assembly and function of the DCC on X. Depletion of SUMO in vivo severely disrupts binding of particular DCC subunits and causes changes in X-linked gene expression similar to those caused by deleting genes encoding DCC subunits. Three DCC subunits are SUMOylated, and SUMO depletion preferentially reduces their binding to X, suggesting that SUMOylation of DCC subunits is essential for robust association with X. DCC SUMOylation is triggered by the signal that initiates DCC assembly onto X. The initial step of assembly-binding of X-targeting factors to recruitment sites on X-is independent of SUMOylation, but robust binding of the complete complex requires SUMOylation. SUMOylated DCC subunits are enriched at recruitment sites, and SUMOylation likely enhances interactions between X-targeting factors and condensin subunits that facilitate DCC binding beyond the low level achieved without SUMOylation. DCC subunits also participate in condensin complexes essential for chromosome segregation, but their SUMOylation occurs only in the context of the DCC. Our results reinforce a newly emerging theme in which multiple proteins of a complex are collectively SUMOylated in response to a specific stimulus, leading to accelerated complex formation and enhanced function.T he X chromosome-wide regulatory process called dosage compensation ensures that males (XO or XY) and females (or hermaphrodites) (XX) produce equivalent levels of X-chromosome products despite having different doses of X chromosomes. The failure to dosage-compensate is lethal. Dosage-compensation strategies differ from worms to humans, but typically a regulatory complex is targeted to the X chromosomes of one sex to regulate transcription along the entire chromosome (1-4). The molecular mechanisms by which these complexes assemble specifically onto X are not well understood. Here, we explore the role of posttranslational modification in the sex-specific assembly and function of the Caenorhabditis elegans dosage-compensation complex (DCC) on X chromosomes.The nematode DCC binds to both X chromosomes of hermaphrodites to halve transcription of X-linked genes by reducing recruitment of RNA polymerase II (2, 5, 6). A separate regulatory mechanism acts in both sexes to increase X-linked gene transcription so that genes on X are expressed equivalently to genes on autosomes after dosage compensation (6, 7).Five of the 10 DCC subunits are homologous to subunits of condensin, a protein complex required for the compaction, resolution, and segregation of chromosomes, suggesting that the DCC regulates gene expression by changi...