We have developed a system in Saccharomyces cerevisiae in which agonist-dependent transcriptional activity of the human progesterone receptor (hPR) is elevated to the point that it compromises cell growth. Screens for suppressors of this phenotype led to the demonstration that RSP5 is involved in hPR transactivation. Expression of RSP5 in yeast cells potentiated hPR and human glucocorticoid receptor (hGR) transcriptional activity and increased the efficacy of weak agonists of these receptors. Remarkably, expression of this yeast protein in mammalian cells had a similar effect on PR and GR transcriptional activity. Importantly, a human homolog of RSP5, hRPF1, functioned identically in mammalian cells. Previously, it has been demonstrated that RSP5 overexpression in yeast cells suppressed mutations within SPT3, a protein which interacts with the TATAbox-binding protein (TBP), suggesting that RSP5 and SPT3 operate in the same regulatory pathway. In support of this observation, we have shown that SPT3 enhances the activity of RSP5 on GR and PR when tested in yeast or mammalian cells. We conclude from these experiments that the regulatory pathways in which RSP5 and SPT3 operate in yeast cells are conserved in higher eukaryotes. Additionally, since SPT3 has been shown to contact yeast TBP directly and is the likely homolog of human TBP-associated factor TAF II 18, we propose that RSP5/hRPF1 and SPT3 establish a functional link between activated PR and GR and the general transcription apparatus.Steroid hormone receptors are ligand-inducible transcription factors belonging to a superfamily of nuclear proteins (16, 17) which also includes receptors for vitamins and thyroid hormone as well as orphan receptors for which no ligands have yet been identified. Within this superfamily, the steroid receptors represent a subgroup of proteins which have considerable sequence similarity and are closely related mechanistically. In the absence of hormone, the steroid receptors are transcriptionally inert and reside in a large macromolecular docking complex consisting of heat shock protein 90 (hsp90), hsp70, hsp56, and other, less well characterized proteins. Upon interaction with their cognate ligands, they undergo a conformational change, displacing the associated heat shock proteins and spontaneously forming receptor homodimers. Subsequently, the homodimeric receptor complex can interact with high affinity with specific DNA response elements located within the regulatory regions of target genes. It is the ability to cooperate with additional cell specific transcription factors, or other trans-acting factors located on the same promoter, which determines the biological activity of the DNA-bound receptor (44, 51). The precise mechanism by which steroid receptors alter transcription by RNA polymerase II is unknown. However, it has been shown that transcriptionally active progesterone receptor (PR) can potentiate target gene transcription, in a reconstituted system in vitro, by stabilizing the preinitiation complex (34). Additionally, ...