We studied the molecular mechanism of demethylation and its role in ka
ppa chain gene regulation. Following transfection into B cell cultures
, this gene undergoes regional demethylation in a process that is deve
lopmentally regulated in a lineage- and stage-specific manner. Althoug
h a germline V kappa promoter is not required for the demodification a
ctivity, a fragment containing the intronic kappa chain transcriptiona
l enhancer and the nearby matrix attachment region is essential. In it
s natural location downstream to the J kappa 5 sequence, this element
induces bidirectional demodification of plasmid constructs in a distan
ce- and orientation-independent manner. When this enhancer is placed i
n an upstream position, however, the kappa gene remains modified and t
ranscriptionally inactive, demonstrating that demethylation is require
d for kappa chain activation. These studies suggest that the kappa enh
ancer plays a dual role in regulating B cell differentiation by induci
ng demethylation and by promoting tissue-specific transcription.