Gibberella zeae (anamorph: Fusarium graminearum) is an important pathogen of maize, wheat, and rice. Colonies of G. zeae produce yellow-to-tan mycelia with the white-to-carmine red margins. In this study, we focused on nine putative open reading frames (ORFs) closely linked to PKS12 and GIP1, which are required for aurofusarin biosynthesis in G. zeae. Among them is an ORF designated GIP2 (for Gibberella zeae pigment gene 2), which encodes a putative protein of 398 amino acids that carries a Zn(II) 2 Cys 6 binuclear cluster DNA-binding domain commonly found in transcription factors of yeasts and filamentous fungi. Targeted gene deletion and complementation analyses confirmed that GIP2 is required for aurofusarin biosynthesis. Expression of GIP2 in carrot medium correlated with aurofusarin production by G. zeae and was restricted to vegetative mycelia. Inactivation of the 10 contiguous genes in the ⌬GIP2 strain delineates an aurofusarin biosynthetic gene cluster. Overexpression of GIP2 in both the ⌬GIP2 and the wild-type strains increases aurofusarin production and reduces mycelial growth. Thus, GIP2 is a putative positive regulator of the aurofusarin biosynthetic gene cluster, and aurofusarin production is negatively correlated with vegetative growth by G. zeae.Fusarium head blight is caused by several species of Fusarium, including Fusarium graminearum (teleomorph: Gibberella zeae), F. culmorum, and F. crookwellense. These fungi are distributed worldwide and produce mycotoxins that cause economic losses in terms of crop and animal production. They also produce pigments that range from yellow to tan to carmine red (23). Two of the pigments produced by G. zeae and F. culmorum are naphthoquinones: aurofusarin and rubrofusarin (1,8,28). Aurofusarin is toxic to poultry and can reduce the nutritional quality of quail eggs (5, 6). Rubrofusarin is antimycobacterial, antiallergenic, and phytotoxic (7,14,15,20).We previously identified a type I polyketide synthase gene (PKS12) and a putative laccase gene (GIP1) that are required for aurofusarin biosynthesis in G. zeae (13). Thus, aurofusarin is synthesized in G. zeae in a manner similar to that used for other fungal polyketide pigments. Agrobacterium-mediated transformation of F. pseudograminearum also results in aurofusarin-deficient mutants, and targeted mutagenesis in G. zeae confirmed the function of PKS12 (21). However, the role(s) of aurofusarin production in the physiology of G. zeae is not well understood. It may play a role in vegetative growth and zearalenone production in G. zeae based on the phenotype of aurofusarin-deficient mutants (21).Genes involved in the biosynthesis of secondary metabolites are often clustered in filamentous fungi (11). For example, clusters for biosynthetic genes of trichothecenes (9), fumonisins (27), and gibberellins (31) have been identified in Fusarium species that produce these metabolites. These clusters include genes encoding metabolic enzymes, transcription factors, and transporters. Thus the genes encoding the protein products...