Dioxin stimulates transcription from the cytochrome P-450IA1 promoter by interaction with the intracellular dioxin receptor. Upon binding of ligand, the receptor is converted to a form which specifically interacts in vitro with two dioxin-responsive positive control elements located in close proximity to each other about 1 kb upstream of the rat cytochrome P-450IA1 gene transcription start point. In rat liver, the cytochrome P-450IA1 gene is marked at the chromatin level by two DNase I-hypersensitive sites that map to the location of the response elements and exist prior to induction of transcription by the dioxin receptor ligand 0-naphthoflavone.In addition, a DNase I-hypersensitive site is detected near the transcription initiation site and is altered in nuclease sensitivity by induction. The presence of the constitutive DNase I-hypersensitive sites at the dioxin response elements correlates with the presence of a constitutive, labile factor which specifically recognizes these elements in vitro. This factor appears to be distinct from the dioxin receptor, which is observed only in nuclear extract from treated cells. In conclusion, these data suggest that a certain protein-DNA architecture may be maintained at the response elements at different stages of gene expression.Transcription of the cytochrome P-450IA1 gene is dramatically induced in response to the environmental contaminant dioxin (2,3,7,8-tetrachlorodibenzo-p-dioxin) or related compounds. The induction process is mediated by the intracellular dioxin receptor protein and initiated by binding of the inducing chemical to the receptor, which in its non-ligandoccupied state most probably is located in the cytoplasmic compartment of target cells (for a review, see reference 29). In the absence of ligand, the cytosolic dioxin receptor is recovered as a latent, non-DNA-binding species (30). However, upon exposure to ligand in vivo, the dioxin-receptor complex undergoes an activation process involving a poorly understood structural alteration that enables it to translocate to the nucleus (29). In vitro, the ligand-activated dioxin receptor has been shown to represent a DNA-binding protein (references 5 and 47 and references therein) which specifically recognizes dioxin-responsive positive control elements (xenobiotic response elements [XREs]) found in the promoter and upstream regions of the cytochrome P-450IA1 and glutathione S-transferase Ya genes (9,16,17,21,31,33 and 48) in that (i) both categories of receptors directly transduce an extracellular signal to the target transcription units they regulate and (ii) the dioxin and steroid receptors require ligand for function.A striking property of the dioxin receptor is that the ligand strictly controls the activation of the receptor from a latent species to a DNA-binding form also under cell-free conditions (7,17,30). In the case of steroid hormone receptors, the glucocorticoid response element of the rat tyrosine aminotransferase gene is protected against methylation by dimethyl sulfate in hepatoma cells only ...