Zac is a C 2 H 2 zinc finger protein that regulates apoptosis and cell cycle arrest through DNA binding and transactivation. The coactivator proteins p300/CBP enhance transactivation through their histone acetyltransferase (HAT) activity by modulating chromatin structure. Here, we show that p300 increases Zac transactivation in a strictly HAT-dependent manner. Whereas the classic recruitment model proposes that coactivation simply depends on the capacity of the activator to recruit the coactivator, we demonstrate that coordinated binding of Zac zinc fingers and C terminus to p300 regulates HAT function by increasing histone and acetyl coenzyme A affinities and catalytic activity. This concerted regulation of HAT function is mediated via the KIX and CH3 domains of p300 in an interdependent manner. Interestingly, Zac zinc fingers 6 and 7 simultaneously play key roles in DNA binding and p300 regulation. Our findings demonstrate, for the first time, that C 2 H 2 zinc fingers can link DNA binding to HAT signaling and suggest a dynamic role for DNA-binding proteins in the enzymatic control of transcription.Zac is a zinc finger (ZF) protein which potently induces apoptosis and cell cycle arrest and prevents tumor formation in nude mice (44,52). Expression of Lot1, the rat orthologue of Zac, is lost during spontaneous transformation of ovary surface epithelial cells in vitro (1), and the human orthologue ZAC/ LOT1/PLAGL1, which is widely expressed in normal tissues, is frequently down-regulated in a methylation-sensitive manner in various tumors (4,5).Evidence that Zac expression during embryogenesis in mesenchymal and neural stem/progenitor cells is tightly regulated in a spatiotemporal fashion and evidence that Zac is upregulated following seizures and transient focal cerebral ischemia in mice suggest that the protein may have additional roles, e.g., in neural differentiation and plasticity (2,15,(48)(49)(50). Indeed, Zac was recently recloned in a subtractive hybridization screen for genes involved in neuronal cell fate specification (31). Moreover, Zac expression can be influenced by hormonal and epigenetic signals during regeneration, differentiation, and age-related degenerative processes, although its exact role in these conditions requires further studies (9,13,46,57).In adults, Zac is highly expressed in most steroid-responsive tissues (35,36,48,52). Interestingly, Zac potently coactivates or corepresses the hormone-dependent activity of nuclear receptors, including that of androgen, estrogen, glucocorticoid, and thyroid hormone receptors (20); all of these receptors are key regulators of cell growth, differentiation, homeostasis, and development and act in a cell-specific manner. Furthermore, recent studies disclosed the importance of Zac's imprinting status in the etiology of transient neonatal diabetes mellitus, an uncommon form of childhood diabetes (NCBI entry OMIM *601410 [http://www.ncbi.nlm.nih.gov/entrez/dispomim.cgi?id ϭ601410]) (28, 51).Our earlier studies revealed that Zac can act as a transcription...