In the mouse, the product of the nude locus, Whn, is required for the keratinization of the hair shaft and the differentiation of epithelial progenitor cells in the thymus. A bacterially expressed peptide representing the presumptive DNA binding domain of the mouse whn gene in vitro specifically binds to a 11-bp consensus sequence containing the invariant tetranucleotide 5 -ACGC. In transient transfection assays, such binding sites stimulated reporter gene expression about 30-to 40-fold, when positioned upstream of a minimal promotor. Whn homologs from humans, bony fish (Danio rerio), cartilaginous fish (Scyliorhinus caniculus), agnathans (Lampetra planeri), and cephalochordates (Branchiostoma lanceolatum) share at least 80% of amino acids in the DNA binding domain. In agreement with this remarkable structural conservation, the DNA binding domains from zebrafish, which possesses a thymus but no hair, and amphioxus, which possesses neither thymus nor hair, recognize the same target sequence as the mouse DNA binding domain in vitro and in vivo. The genomes of vertebrates and cephalochordates contain only a single whn-like gene, suggesting that the primordial whn gene was not subject to gene-duplication events. Although the role of whn in cephalochordates and agnathans is unknown, its requirement in the development of the thymus gland and the differentiation of skin appendages in the mouse suggests that changes in the transcriptional control regions of whn genes accompanied their functional reassignments during evolution.The primary function of the thymus is to generate and select a highly diverse repertoire of T cells that exhibit self-tolerance and restriction to self major histocompatibility complex. The importance of the thymic microenvironment in shaping the T cell repertoire has long been recognized, and recent work has demonstrated that positive and negative selection of developing T cells depends on cell-cell interactions with thymic epithelium (1, 2). In rodents with mutations at the nude locus, the thymus fails to form, causing severe immunodeficiency; the defect has been localized to the thymic microenvironment rather than to the developing T cells (3). The cloning of the gene, whn (winged helix nude) affected by the nude mutation (4) has provided the first glimpse of the genetic control of thymic epithelial differentiation. Although the initial formation of the thymic epithelial primordium before the entry of lymphocyte progenitors does not require the activity of whn, the subsequent differentiation of primitive precursor cells into subcapsular, cortical, and medullary epithelial cells of the mature thymus depends on the activity of the whn gene (5).