The Drosophila melanogaster suppressor of sable gene, su(s), encodes a novel, 150-kDa nuclear RNA binding protein, SU(S), that negatively regulates RNA accumulation from mutant alleles of other genes that have transposon insertions in the 5 transcribed region. In this study, we delineated the RNA binding domain of SU(S) and evaluated its relevance to SU(S) function in vivo. As a result, we have defined two arginine-rich motifs (ARM1 and ARM2) that mediate the RNA binding activity of SU(S). ARM1 is required for in vitro high-affinity binding of SU(S) to small RNAs that were previously isolated by SELEX (binding site selection assay) and that contain a common consensus sequence. ARM1 is also required for the association of SU(S) with larval polytene chromosomes in vivo. ARM2 promotes binding of SU(S) to SELEX RNAs that lack the consensus sequence and apparently is neither necessary nor sufficient for the stable polytene chromosome association of SU(S). Use of the GAL4/UAS system to drive ectopic expression of su(s) cDNA transgenes revealed two previously unknown properties of SU(S). First, overexpression of SU(S) is lethal. Second, SU(S) negatively regulates expression of su(s) intronless cDNA transgenes, and the ARMs are required for this effect. Considering these and previous results, we propose that SU(S) binds to the 5 region of nascent transcripts and inhibits RNA production in a manner that can be overcome by splicing complex assembly.Eukaryotic protein-coding RNAs are typically transcribed as larger pre-mRNAs that are processed to a mature form. PremRNA processing is coupled to transcription (7,8,27,42) and involves a complex set of events including the addition of a 7-methylguanosine cap to the 5Ј end, splicing to remove internal introns, and cleavage/polyadenylation of the 3Ј end. Interactions between the cellular transcription and RNA processing apparatuses and between RNA processing components that assemble at various sites on the pre-mRNA are thought to facilitate the efficient production of mRNAs that are suitable substrates for translation. Incorrectly processed transcripts can be recognized as such and degraded (16,24,26,40).The Drosophila melanogaster suppressor of sable gene, su(s), encodes a protein involved in nuclear pre-mRNA metabolism. Loss-of-function su(s) mutations either suppress or enhance specific mutant alleles of a variety of unlinked genes (49). Some su(s) mutants also exhibit defects in viability and male fertility (52). Although both the su(s) gene and mutant alleles affected by su(s) have been cloned and characterized, the function of the su(s) gene product, SU(S), has been somewhat elusive. The enhanced alleles are associated with large, complex genes that cannot easily be analyzed in detail at a molecular level. More is known about the suppressed alleles, through molecular studies of vermilion (v), yellow (y), and purple (pr) (20)(21)(22)29). The su(s)-suppressible mutations have transposon insertions near the 5Ј end of the transcribed region that interrupt either the first exon...