The yeast GAL80 gene, encoding a negative regulatory protein of galactose-inducible genes, shows both constitutive and galactose-inducible expression. The inducible transcription is under the control of Gal4p, a common activator for the galactose-inducible genes, which binds to an upstream activation sequence, called UASG, spanning between -105 and -89 in the 5'-flanking region of GAL80. Here we demonstrate that the constitutive transcription started at + 1, whereas the inducible transcription occurs from a set of downstream sites at +37, +47, +56, and +67. Both transcriptions were enhanced 10-fold by another UAS, whose 5' boundary is located between -195 and -185. Gal4p stimulated transcription, which depends on the TATA box located at -20, from all the downstream sites. By contrast, the constitutive transcription depended on a small region of less than 16 bp long encompassing the +1 site, which directed transcription even in the absence of both the TATA box and the UASs. When a fragment covering that region was inserted immediately upstream of the open reading frame of HIS3, the resulting gene fusion, if introduced into a his3 yeast strain, supported growth on histidine-lacking medium. We detected by gel retardation assay a protein specifically interacting with this fragment. All the transcriptions observed in the in vivo experiments were faithfully reproduced in a cell-free transcription system. From these results, we suggest that initiation of GAL80 transcription involves two alternative pathways; one is initiator dependent, and the other is Gal4p regulated and TATA dependent.Transcriptional regulation of eukaryotic genes involves interactions between regulatory proteins and the basal transcriptional machinery. The regulatory proteins, which confer the response to extra and intracellular signals, bind to specific DNA sequences termed enhancers or upstream activation sequences (UASs). These specific factors appear to control transcriptional efficiency either positively or negatively (9, 21, 41). Their regulatory signals are transmitted to the basal transcriptional machinery formed on core promoter elements by mechanisms that are not understood (8,25,38,40,41). Two distinct elements have been identified as constituents of the core promoter, the TATA box and the initiator. The TATA box, which is required for accurate and efficient transcription, helps ordered assembly of general transcription factors and RNA polymerase II into the preinitiation complex (PIC) (56). However, some genes function in the absence of the TATA box. A TATA-less promoter contains an initiator element that overlaps the transcription start site. The initiator contains all the information required for transcription initiation and directs accurate initiation by itself (51, 55). Initiator-dependent transcription may involve a PIC that is different from the PIC formed on the TATA box (39,40,42,55,57