We present evidence of complex balancing regulation of HTR1B transcription by common polymorphisms in its promoter. Computational analysis of the HTR1B gene predicted that a 5 0 segment, spanning common DNA sequence variations, TÀ261G, AÀ161T, and À182INS/ DELÀ181, contained a putative functional promoter. Using a secreted alkaline phosphatase (SEAP) reporter gene system, we found that the haplotype À261G_À182INSÀ181_AÀ161 enhanced transcriptional activity 2.3-fold compared with the haplotype TÀ261_À182INSÀ181_AÀ161. Conversely, À161T reversed this, and the net effect when À261G and À161T were in the same haplotype (À261G_À182INSÀ181_À161T) was equivalent to the major haplotype (TÀ261_À182INSÀ181_AÀ161). Electrophoretic mobility shift experiments showed that À261G and À161T modify the binding of transcription factors (TFs): À261G generates a new AP2 binding site, while alleles AÀ161 and À161T exhibit different binding characteristics to AP1. TÀ261G and AÀ161T were found to be in linkage disequilibrium (LD) with G861C in a European ancestry population. Interestingly, G861C has been reported to be associated with several psychiatric disorders. Our results indicate that HTR1B is the target of substantial transcriptional genetic regulation by common haplotypes, which are in LD with the HTR1B single-nucleotide polymorphism (SNP) most commonly used in association studies. Molecular Psychiatry (2003) 8, 901-910.