RETINOIC acid receptors (RARs) and retinoid-X receptors (RXRs) activat
e or repress transcription by binding as heterodimers to DNA-response
elements that generally consist of two direct repeat half-sites of con
sensus sequence AGGTCA (reviewed in ref. 1). On response elements cons
isting of direct repeats spaced by five base pairs (DR + 5 elements),
RAR/RXR heterodimers activate transcription in response to RAR-specifi
c ligands, such as all-trans-retinoic acid (RA)(2). In contrast, on el
ements consisting of direct repeats spaced by one base pair (DR + 1 el
ements), RAR/RXR heterodimers exhibit little or no response to activat
ing ligands and repress RXR-dependent transcription(3). Here we show t
hat ligand-dependent transactivation by RAR on DR + 5 elements require
s the dissociation of a new nuclear receptor co-repressor, N-CoR, and
recruitment of the putative co-activators p140 and p160 (refs 4, 5). S
urprisingly, on DR + 1 elements, N-CoR remains associated with RAR/RXR
heterodimers even in the presence of RAR ligands, resulting in consti
tutive repression. These observations indicate that DNA-response eleme
nts can allosterically regulate RAR-co-repressor interactions to deter
mine positive or negative regulation of gene expression.