The sequence surrounding the Azorhizobium caulinodans (Ac) regulatory
nodD gene was analyzed. Upstream from nodD and in the opposite orienta
tion, two small open reading frames were identified (ORF1 and ORF2). T
he DNA sequence corresponding to ORF1, termed epsilon 1, is similar to
a part of the insertion element IS51 from Pseudomonas savastanoi. Imm
ediately downstream from nodD, a repeated element, delta 1, has been d
escribed [Goethals et al., Mel. Plant-Microbe Interact. 5 (1992) 405-4
11]. The elements epsilon 1 and delta 1 form the borders of a shift in
GC content between nodD and its surrounding sequences. delta 1 and th
e ORF1+ORF2 sequence both occur as two copies in the Ac genome. Based
on these observations, we postulate that the repeated elements played
a role in the horizontal transfer of nodD during evolution. Insertion
mutations in epsilon 1 and delta 1 did not influence the induction of
the nodulation operon, nodABCSUIJ, and had no effect on the nodulation
behavior on Sesbania rostrata. lacZ fusion studies suggested that nod
D is constitutively transcribed and that the promoter driving nodD exp
ression overlaps with the ORF1 sequence. In contrast, promoter activit
y in the direction of ORF1 and ORF2 was not observed. In the nodD-ORF1
-intervening sequence, a nod box-related motif was recognized that dev
iates from active nod boxes by the absence of an ATC-9-bp-GAT palindro
me, i.e., a sequence involved in NodD-mediated transcription stimulati
on [Goethals et al., Proc. Natl. Acad. Sci. USA 89 (1992) 1646-1650].