The varicella-zoster virus (VZV) IE62 protein is the major transcriptional activator. IE62 is capable of associating with DNA both nonspecifically and in a sequence-specific manner via a consensus binding site (5-ATCGT-3). However, the function of the consensus site is poorly understood, since IE62 efficiently transactivates promoter elements lacking this sequence. In the work presented here, sequence analysis of the VZV genome revealed the presence of 245 IE62 consensus sites throughout the genome. Some 54 sites were found to be present within putative VZV promoters. Electrophoretic mobility shift assay (EMSA) experiments using an IE62 fragment containing the IE62 DNA-binding domain and duplex oligonucleotides that did or did not contain the IE62 consensus binding sequence yielded K D (equilibrium dissociation constant) values in the nanomolar range. Further, the IE62 DNA binding domain was shown to have a 5-fold-increased affinity for its consensus site compared to nonconsensus sequences. The effect of consensus site presence and position on IE62-mediated activation of native VZV and model promoters was examined using site-specific mutagenesis and transfection and superinfection reporter assays. In all promoters examined, the consensus sequence functioned as a distance-dependent repressive element. Protein recruitment assays utilizing the VZV gI promoter indicated that the presence of the consensus site increased the recruitment of IE62 but not Sp1. These data suggest a model where the IE62 consensus site functions to down-modulate IE62 activation, and interaction of IE62 with this sequence may result in loss or decrease of the ability of IE62 to recruit cellular factors needed for full promoter activation.Varicella-zoster virus (VZV) is a human alphaherpesvirus that causes varicella (chicken pox) and establishes latency in cells within dorsal root ganglia during primary infection. Upon reactivation, VZV causes shingles, or zoster, which usually involves productive infection along a single dermatome and infection of the skin innervated by that dermatome (1). Productive VZV infection during either primary infection or reactivation results in the expression of the entire coding capacity of the 125-kb VZV genome, leading to the synthesis of some 70 proteins. The immediate-early 62 (IE62) protein, the major viral transcriptional activator, is capable of transactivating the majority of if not all VZV promoters during lytic infection. It is also capable of transactivating heterologous promoters and model promoters containing a minimal number of cis-acting elements. IE62 is required for viral growth in tissue culture and increases the infectivity of VZV DNA (32, 42). The protein is 1,310 amino acids in length and contains a potent N-terminal acidic activation domain and a centrally located DNA binding domain. It is believed to be a native homodimer, based on comparison with its putative homolog HSV-1 ICP4 and the experimentally established dimerization of a bacterially expressed fragment containing the DNA-binding do...