When a retrovirus infects a cell, the viral genome is stably integrated into the host chromosome, efficiently expressed, and faithfully passed to the infected cell's progeny. For these reasons, recombinant retroviral vectors have often been used to express exogenous genes in vertebrate cells (reviewed in references 28, 34, and 52). In some of these cases, it is advantageous to express two exogenous genes from a single proviral genome. In strategies being developed for gene therapy, for example, the retrovirus often contains not only the gene of interest but also a selectable marker. The marker is used to facilitate the isolation of infected cells, which are then used as a source of the potentially therapeutic gene product (reviewed in reference 12).In another set of studies, we and others have used vectors encoding the histochemical marker 3-galactosidase, the product of the Escherichia coli lacZ gene, as lineage tracers in vivo. A single cell is infected by a retrovirus, the proviral genome is inherited by the cell's progeny, and the clonal relatives are identified with the histochemical stain for LacZ (11,13,16,18,45; reviewed in reference 17). To extend this work, we wished to construct an efficient double-expression vector to transfer both lacZ and a second gene to single cells in vivo. If lacZ and a second bioactive gene were reliably coexpressed at high levels, we could use LacZ histochemistry to identify small clones of transgenic cells in a wild-type environment and then seek cell autonomous effects of the second gene by analyzing the number, distribution, and morphology of the labeled cells.In applications such as these, it is essential that the provirus express both genes within the same individual cells. Retroviruses have been successful in evolving strategies for * Corresponding author.coexpressing their own genes. These strategies include synthesis and subsequent processing of fusion proteins, ribosome frameshifting, and regulated splicing to generate subgenomic messages. Unfortunately, achieving balanced expression of multiple exogenous genes from engineered retrovirus vectors has been more problematic. Two approaches have been used previously. The first involves the generation of separate mRNAs by regulated splicing of a single primary transcript expressed from the upstream long terminal repeat (LTR). This strategy mimics that used by retroviruses to generate the env gene product (54). With this approach, expression of one gene is always at the expense of the other, and the ratio of spliced to unspliced mRNA is highly dependent on the context (1,2,48,49). The second approach involves expression of the upstream gene from the retrovirus promoter in the LTR and expression of the downstream gene from an internal promoter. This approach has been used most often in vectors designed for gene therapy (reviewed in references 28 and 34) but is compromised by competitive interference between promoters (4,8,20,39). Thus, individual isolates may express one gene or the other, rather than both.The recent demons...