The origin recognition complex (ORC) is required to initiate eukaryoti
c DNA replication and also engages in transcriptional silencing in S.
cerevisiae. We observed a striking preferential but not exclusive asso
ciation of Drosophila ORC2 with heterochromatin on interphase and mito
tic chromosomes. HP1, a heterochromatin-localized protein required for
position effect variegation (PEV), colocalized with DmORC2 at these s
ites. Consistent with this localization, intact DmORC and HP1 were fou
nd in physical complex. The association was shown biochemically to req
uire the chromodomain and shadow domains of HP1. The amino terminus of
DmORC1 contained a strong HP1-binding site, mirroring an interaction
found independently in Xenopus by a yeast two-hybrid screen. Finally,
heterozygous DmORC2 recessive lethal mutations resulted in a suppressi
on of PEV. These results indicate that ORC may play a widespread role
in packaging chromosomal domains through interactions with heterochrom
atin-organizing factors.