The activity of the endogenous DNA topoisomerase type I (EC 5.99.1.2) can be quantified in situ by determining how efficiently the enzyme is trapped in a covalent complex with DNA upon lysis of nuclei with detergents. In this way, we can measure relative levels of topoisomerase binding to DNA at native sites in chromatin. Since the majority of topoisomerase I is localized in the nucleolus at rRNA genes, we have evaluated how low levels of actinomycin D, which terminate transcription of rRNA genes, affect the activity of topoisomerase I. In vivo, as well as in vitro with purified topoisomerase I, we have found that drug treatment extends the half-life of the covalent topoisomerase-DNA complex. Actinomycin D stabilizes the nicked intermediate in the cleavage and resealing reaction but otherwise does not significantly alter the strand-passing ability of topoisomerase I. Sequence-specific cleavages by topoisomerase I were stimulated by actinomycin D at identical sequences recognized by the enzyme in the absence of drug. The localization of topoisomerase I in the nucleolus, coupled with the observation that transcription in this organelle is highly sensitive to actinomycin D and camptothecin treatment, leads us to propose that topoisomerase I contributes to actinomycin D inhibition of transcription.A number of reports have suggested that type I DNA topoisomerase (topoisomerase I; EC 5.99.1.2) is involved in transcription based on its association with actively transcribed genes in chromatin (1-6). This association is clearly evident for rRNA genes in animals, yeast, and Tetrahymena (2,3,7). The enzyme is acting catalytically at genes characterized by a high rate of transcription and the heaviest enrichment of topoisomerase I is seen cytologically within the nucleolus (2). Topoisomerase I makes a transient singlestrand break in the sugar-phosphate backbone of DNA (for reviews, see refs. 8 and 9), which introduces a site of rotational freedom in the template; thus, topoisomerase action may provide a swivel point to facilitate entry and/or progression of the bulky transcriptional apparatus. Alternatively, when nascent RNA chains are hybridized to the one strand of template, the topology changes and topoisomerase I may be required to return to (or adjust) the topological ground state. Studies of yeast topoisomerase I mutants suggest that topoisomerase I is not an essential gene (10, 11); however, it seems that topoisomerase II (EC 5.99.1.3) is complementing the defect since topoisomerase II (like topoisomerase I) has been associated with transcriptionally active regions in chromatin (ref. 12; M.T.M. and V. Mehta, unpublished data) and topoisomerase I and II double mutants display a defect in rRNA transcription (7).A better understanding of the involvement of topoisomerase I in transcription can be obtained by analyzing the activity of topoisomerase I catalyzed reactions in a chromosomal setting. The covalent intermediate is a functional reaction intermediate in the process of breaking and rejoining the DNA substra...