Osteoblasts and adipocytes may develop from common bone marrow mesenchymal precursors. Transgenic mice overexpressing ⌬FosB, an AP-1 transcription factor, under the control of the neuron-specific enolase (NSE) promoter show both markedly increased bone formation and decreased adipogenesis. To determine whether the two phenotypes were linked, we targeted overexpression of ⌬FosB in mice to the osteoblast by using the osteocalcin (OG2) promoter. OG2-⌬FosB mice demonstrated increased osteoblast numbers and an osteosclerotic phenotype but normal adipocyte differentiation. This result firmly establishes that the skeletal phenotype is cell autonomous to the osteoblast lineage and independent of adipocyte formation. It also strongly suggests that the decreased fat phenotype of NSE-⌬FosB mice is independent of the changes in the osteoblast lineage. In vitro, overexpression of ⌬FosB in the preadipocytic 3T3-L1 cell line had little effect on adipocyte differentiation, whereas it prevented the induction of adipogenic transcription factors in the multipotential stromal cell line ST2. Also, ⌬FosB isoforms bound to and altered the DNA-binding capacity of C/EBP. Thus, the inhibitory effect of ⌬FosB on adipocyte differentiation appears to occur at early stages of stem cell commitment, affecting C/EBP functions. It is concluded that the changes in osteoblast and adipocyte differentiation in ⌬FosB transgenic mice result from independent cell-autonomous mechanisms.Although osteoblasts and adipocytes represent two morphologically and functionally distinct cell types, it has been proposed that they may develop from a common mesenchymal precursor in the bone marrow (36,40,43). Indeed, an inverse relationship between adipocyte and osteoblast differentiation has been suggested, as exemplified by increased bone marrow adipocytes in age-related bone loss (4,6,29,32,60) or after treatment with glucocorticoids (57). Several regulatory factors involved in osteoblast and adipocyte differentiation have been identified (27,42,45). However, the identities of the factors that control commitment at the branching point between the osteoblast and adipocyte lineages and the degree of plasticity between the two cell types are still uncertain (33,38).We have recently reported that transgenic mice overexpressing ⌬FosB, a member of the activator protein 1 (AP-1) family of transcription factors, under the control of the neuron-specific enolase (NSE) promoter develop not only a severe and progressive osteosclerotic phenotype, characterized as increased bone formation, but also a pronounced decrease in adipogenesis and fat levels (25, 47, 53). The AP-1 family of basic leucine zipper transcription factors comprises various combinations of Jun (c-Jun, JunB, and JunD) and Fos (c-Fos, FosB, Fra-1, and Fra-2) proteins, which upon dimer formation regulate gene transcription by binding to consensus response elements present in the promoter region of target genes (23). Several studies have demonstrated an important regulatory role of AP-1 factors, especially the ...