In budding yeast, phosphoinositide-specific phospholipase C (Plc1p encoded by PLC1 gene) is important for function of kinetochores. Deletion of PLC1 results in benomyl sensitivity, alterations in chromatin structure of centromeres, mitotic delay, and a higher frequency of chromosome loss. Here we intended to utilize benomyl sensitivity as a phenotype that would allow us to identify genes that are important for kinetochore function and are downstream of Plc1p. However, our screen identified SIN4, encoding a component of the Mediator complex of RNA polymerase II. Deletion of SIN4 gene (sin4⌬) does not suppress benomyl sensitivity of plc1⌬ cells by improving the function of kinetochores. Instead, benomyl sensitivity of plc1⌬ cells is caused by a defect in expression of FLR1, and the suppression of benomyl sensitivity in plc1⌬ sin4⌬ cells occurs by derepression of FLR1 transcription. FLR1 encodes a plasma membrane transporter that mediates resistance to benomyl. Several other mutations in the Mediator complex also result in significant derepression of FLR1 and greatly increased resistance to benomyl. Thus, benomyl sensitivity is not a phenotype exclusively associated with mitotic spindle defect. These results demonstrate that in addition to promoter-specific transcription factors that are components of the pleiotropic drug resistance network, expression of the membrane transporters can be regulated by Plc1p, a component of a signal transduction pathway, and by Mediator, a general transcription factor. The results thus suggest another layer of complexity in regulation of pleiotropic drug resistance.The hydrolysis of phosphatidylinositol 4,5-bisphosphate by phospholipase C (PLC) 3 yields two prominent eukaryotic second messengers, 1,2-diacylglycerol and inositol 1,4,5-trisphosphate (IP 3 ). In higher eukaryotes, the hydrophilic IP 3 triggers the release of calcium from internal stores and thus modulates Ca 2ϩ /calmodulin-regulated pathways, whereas the hydrophobic 1,2-diacylglycerol activates the phospholipid-and Ca 2ϩ -dependent protein kinase C (1-3).In yeast cells, PLC (Plc1p encoded by PLC1) and three inositol polyphosphate (InsPs) kinases (Ipk2p/Arg82p, Ipk1p, and Kcs1p) constitute a nuclear signaling pathway that affects transcriptional control (4) and export of mRNA from the nucleus (5). Recently, InsPs produced by a Plc1p-dependent pathway have been shown to regulate the activity of chromatin remodeling complexes in vivo and in vitro (6, 7). The induction of the phosphate-responsive PHO5 gene, chromatin remodeling of its promoter, and recruitment of Swi/Snf and Ino80 chromatin remodeling complexes are impaired in the ipk2/arg82 mutant strain (7). In vitro, nucleosome mobilization by the yeast Swi/Snf complex is stimulated by IP 4 and IP 5 , whereas IP 6 inhibits nucleosome mobilization by yeast Isw2 and Ino80 complexes and Drosophila NURF complex (6). A possible mechanism by which InsPs affect chromatin remodeling may involve effects on protein conformation of the chromatin remodeling complexes (7). Alternativ...