Transcription activation of a-specific genes in Saccharomyces cerevisiae is regulated by two proteins, MCM1 and al, which bind to DNA sequences, called P'Q elements, found upstream of a-specific genes. Neither MCM1 nor al alone binds efficiently to P'Q elements. Together, however, they bind cooperatively in a manner that requires both the P' sequence, which is a weak binding site for MCM1, and the Q sequence, which has been postulated to be the binding site for al. We analyzed a collection of point mutations in the P'Q element of the STE3 gene to determine the importance of individual base pairs for a-specific gene transcription. Within the 10-bp conserved Q sequence, mutations at only three positions strongly affected transcription activation in vivo.These same mutations did not affect the weak binding to P'Q displayed by MCM1 alone. In vitro DNA binding assays showed a direct correlation between the ability of the mutant sequences to form ternary P'Q-MCM1-al complexes and the degree to which transcription was activated in vivo. Thus, the ability of al and MCM1 to bind cooperatively to P'Q elements is critical for activation of a-specific genes. In all natural a-specific genes the Q sequence is adjacent to the degenerate side of P'. To test the significance of this geometry, we created several novel juxtapositions of P, P', and Q sequences. When the Q sequence was opposite the degenerate side, the composite QP' element was inactive as a promoter element in vivo and unable to form stable ternary QP'-MCM1-al complexes in vitro. We also found that addition of a Q sequence to a strong MCM1 binding site allows the addition of ad to the complex. This finding, together with the observation that Q-element point mutations affected ternary complex formation but not the weak binding of MCM1 alone, supports the idea that the Q sequence serves as a binding site for al.The a and a cell types of the yeast Saccharomyces cerevisiae express distinct sets of genes: a cells transcribe a-specific genes, and a cells transcribe a-specific genes. This differential transcription is achieved by a combinatorial strategy involving three proteins, MCM1, which is expressed in all cell types, and al and a2, which are expressed exclusively in a cells. At each gene set, unique regulatory complexes are formed by the binding of subsets of the three proteins to specific sites within the transcriptional control regions. Two complexes serve to activate transcription, and a third serves to repress transcription. The sum of their activities limits transcription of a-and a-specific genes to the appropriate cell type (for a review, see references 6, 16, and 45).Cell-type-specific transcription of a-specific genes is achieved by the action of MCM1 and a2 (Fig. 1). The upstream control regions of a-specific genes contain nearly perfect versions of the palindromic MCM1-binding site, the P box, flanked by a2-binding sites. MCM1 binds to these P boxes and is essential for transcription activation of the gene set in a cells (Fig. 1) (2,8,17,20,21,25,32). In ...