Eukaryotic genomes frequently contain large numbers of repetitive RNA polymerase III (pol III) promoter elements interspersed between and within RNA pol II transcription units, and in several instances a regulatory relationship between the two types of promoter has been postulated. In the budding yeast Saccharomyces cerevisiae, tRNA genes are the only known interspersed pol III promoter-containing repetitive elements, and we find that they strongly inhibit transcription from adjacent pol II promoters in vivo. This inhibition requires active transcription of the upstream tRNA gene but is independent of its orientation and appears not to involve simple steric blockage of the pol II upstream activator sites. Evidence is presented that different pol II promoters can be repressed by different tRNA genes placed upstream at varied distances in both orientations.To test whether this phenomenon functions in naturally occurring instances in which tRNA genes and pol II promoters are juxtaposed, we examined the sigma and Ty3 elements. This class of retrotransposons is always found integrated immediately upstream of different tRNA genes. Weakening tRNA gene transcription by means of a temperature-sensitive mutation in RNA pol III increases the pheromone-inducible expression of sigma and Ty3 elements up to 60-fold.Many eukaryotic genomes contain families of moderately to highly repeated DNA elements containing RNA polymerase III (pol III) promoters (reviewed in references 74 and 75). Frequently these elements resemble the intragenic pol III promoter class found in tRNA and 7SL RNA genes, which consist of consensus A-box and B-box sequences downstream from the transcription start sites. These elements can be found either dispersed as individual copies or as highly reiterated tandem copies, especially in heterochromatic regions. The pol III elements are not generally transcribed into stable RNA commensurate with their copy number in vivo, although they can usually be transcribed in vitro, and there are numerous reports of condition-specific or development-specific activation in vivo (10,27,61,90,95,97,101). Several hypotheses have been put forward regarding possible functions for these sequences, but one particularly interesting suggestion is that dispersed RNA pol III promoters might exert either a positive or negative influence on the transcriptional activity of overlapping or nearby RNA pol II promoters (11,12,15,89,90,96). In some cases, cryptic pol III promoter elements directly interfere with factor binding sites in the pol II promoter upstream region or with the pol II initiation site itself. In at least one report, however, repression was achieved by an Alu repetitive element, in which case there was no obvious steric overlap with the neighboring pol II promoter (96).In this report, the question of whether RNA pol III promoters can exert negative transcriptional regulation on neighboring DNA has been approached by studying the budding yeast Saccharomyces cerevisiae. Although this yeast does not appear to have any Alu-ty...