Position-effect variegation (PEV) is the epigenetic disruption of gene expression near the de novo-formed euchromatinheterochromatin border. Heterochromatic cis-inactivation may be accompanied by the trans-inactivation of genes on a normal homologous chromosome in trans-heterozygous combination with a PEV-inducing rearrangement. We characterize a new genetic system, inversion In(2)A4, demonstrating cis-acting PEV as well as trans-inactivation of the reporter transgenes on the homologous nonrearranged chromosome. The cis-effect of heterochromatin in the inversion results not only in repression but also in activation of genes, and it varies at different developmental stages. While cis-actions affect only a few juxtaposed genes, trans-inactivation is observed in a 500-kb region and demonstrates а nonuniform pattern of repression with intermingled regions where no transgene repression occurs. There is no repression around the histone gene cluster and in some other euchromatic sites. trans-Inactivation is accompanied by dragging of euchromatic regions into the heterochromatic compartment, but the histone gene cluster, located in the middle of the trans-inactivated region, was shown to be evicted from the heterochromatin. We demonstrate that trans-inactivation is followed by de novo HP1a accumulation in the affected transgene; trans-inactivation is specifically favored by the chromatin remodeler SAYP and prevented by Argonaute AGO2. KEYWORDS heterochromatin; Drosophila; PEV; trans-inactivation; nuclear compartmentalization P osition-effect variegation (PEV) is an epigenetic phenomenon of inactivation of a gene in a portion of cells caused by relocation of a gene into or very close to the heterochromatin. Heterochromatin has a distinct chromatin structure that includes specific histone modifications, associated proteins, and a condensed nucleosome package. This structure can spread from the euchromatin-heterochromatic border into the euchromatin by self-assembly and propagation of a complex containing SU(VAR)3-9 histone methyltransferase, HP1a, and SU(VAR)3-7 proteins, thus affecting the expression of euchromatic genes near the border (Grewal and Elgin 2002; Schotta et al. 2003;Hines et al. 2009;Elgin and Reuter 2013). Analysis of the spreading of heterochromatin using high-throughput approaches has been performed in a single paper aimed at the analysis of white-mottled X-chromosomal inversions, demonstrating PEV of the white gene (Vogel et al. 2009). It was found that HP1a propagates up to 175 kb into euchromatin from the heterochromatin border and demonstrates uneven distribution over the spreading area. Only the white gene among 20 measured genes in this region demonstrates decreased expression as a result of PEV.Here we present a detailed study of the genetic system (inversion In(2)A4) demonstrating cis-effects of heterochromatin on gene expression as well as inversion-induced transinactivation of the transgenes located on the homologous nonrearranged chromosome. RNA-Seq analysis shows that only a few euc...