Heterochromatic gene silencing results from the establishment of a repressive chromatin structure over reporter genes. Gene silencing is often variegated, implying that chromatin may stochastically switch from repressive to permissive structures as cells divide. To identify remodeling enzymes involved in reorganizing heterochromatin, we tested 11 SNF2-type chromatin remodelers in Drosophila for effects on gene silencing. Overexpression of five remodelers affects gene silencing, and the most potent de-repressor is the ␣-thalassaemia mental retardation syndrome X-linked (ATRX) homolog X-linked nuclear protein (XNP). Although the mammalian ATRX protein localizes to heterochromatin, Drosophila XNP is not a general component of heterochromatin. Instead, XNP localizes to active genes and to a major focus near the heterochromatin of the X chromosome. The XNP focus corresponds to an unusual decondensed satellite DNA block, and both active genes and the XNP focus are sites of ongoing nucleosome replacement. We suggest that the XNP remodeler modulates nucleosome dynamics at its target sites to limit chromatin accessibility. Although XNP at active genes may contribute to gene silencing, we find that a single focus is present across Drosophila species and that perturbation of this site cripples heterochromatic gene silencing. Thus, the XNP focus appears to be a functional genetic element that can contribute to gene silencing throughout the nucleus.heterochromatin ͉ nucleosome dynamics ͉ chromatin remodelers C hromatin in the eukaryotic nucleus consists of DNA wrapped around histone octamers into nucleosomes. Cytological and molecular features distinguish different kinds of chromatin within the nucleus (1). Gene-rich regions are usually packaged into euchromatin, which is decondensed in interphase nuclei, enriched for histone modifications associated with transcriptional activity, and often has high DNA accessibility. In contrast, gene-poor and repetitive sequences are packaged into heterochromatin, a condensed, relatively inaccessible chromatin organization that carries histone modifications associated with transcriptional repression.The genetic phenomenon of position effect variegation first indicated that heterochromatin could affect gene activity (2). Heterochromatic gene silencing has served as a sensitive measure to identify mutations in components of chromatin-based regulation (3, 4). Transcriptional repression in heterochromatin is thought to be crucial to limit the accumulation of transposable elements and unstable repetitive sequences in genomes.A major class of factors involved in altering chromatin structure is the SNF2-type chromatin remodelers (named after the founding sucrose nonfermenting 2 protein in Saccharomyces cerevisiae) (5). These nuclear enzymes use the energy of ATP binding and hydrolysis to manipulate histone-DNA contacts in nucleosomes. Individual remodelers also appear to differ in their activities; whereas some have been implicated in regulating promoter accessibility (6, 7), others are required ...