The niiA (nitrite reductase) and niaD (nitrate reductase) genes of Aspergillus nidulans are subject to both induction by nitrate and repression by ammonium or glutamine. The intergenic region between these genes functions as a bidirectional promoter. In this region, nucleosomes are positioned under nonexpression conditions. On nitrate induction under derepressing conditions, total loss of positioning occurs. This is independent of transcription and of the NirA-specific transcription factor but absolutely dependent on the widedomain GATA-binding AreA factor. We show here that a 3-amino-acid deletion in the basic carboxy-terminal sequence of the DNA-binding domain results in a protein with paradoxical properties. Its weak DNA binding is consistent with its loss-of-function phenotype on most nitrogen sources. However, it results in constitutive expression and superinducibility of niiA and niaD. Nucleosome loss of positioning is also constitutive. The mutation partially suppresses null mutations in the transcription factor NirA. AreA binds NirA in vitro, and the mutation does not affect this interaction. The in vivo methylation pattern of the promoter is drastically altered, suggesting the recruitment of one or more unknown transcription factors and/or a local distortion on the DNA double helix.The transcriptional activation of the niiA (nitrite reductase) and niaD (nitrate reductase) genes of Aspergillus nidulans involves a 1.2-kb intergenic region. The activation process is strictly dependent on two transcription factors, NirA, a Zn binuclear cluster protein, and AreA, a GATA factor (7,41,48,61) NirA is specific for the nitrate assimilation pathway, while AreA is involved in the transcriptional activation of scores of genes involved in the utilisation of different nitrogen sources (see references 4, 35, and 51 for reviews). Activation of transcription has an absolute requirement for both the presence of the specific inducer (nitrate) and the absence of repressing nitrogen metabolites (ammonium and glutamine [41]). The standard model is that AreA mediates general derepression in the absence of ammonium or glutamine while NirA mediates specific induction by nitrate (7,39). Results presented here and in reference 41 make this simple model untenable. A very similar system of control is extant in Neurospora crassa, where close homologues of NirA and AreA operate (39), and probably in all filamentous ascomycetes able to assimilate nitrate (see, for example, references 18 and 19).