In Drosophila, the homeotic genes encode transcription factors which c
ontrol segment identity during embryogenesis by specifying the appropr
iate set of 'target' genes necessary to produce the individual segment
al characteristics. Though we know much about the homeotic genes and t
he proteins they encode, we know little of their targets. Here we iden
tify and characterize one such target gene, a gene activated by the pr
oduct of the homeotic gene Deformed. DNA binding assays and expression
of reporter gene constructs indicate that activation of this gene req
uires a direct interaction between the Deformed protein and an upstrea
m enhancer element at this target gene. However, although Deformed is
required to activate this gene in cells of the maxillary segment, ecto
pically expressed Deformed does not activate the gene in other regions
of the embryo. We conclude from this and other observations that addi
tional factors may be required to activate the target gene, and, there
fore, Deformed may participate in either a combinatorial or hierarchic
al activation signal in the maxillary cells. This newly identified gen
e encodes a novel protein of unknown function, though proteins with si
milar amino acid composition have been found. The pattern of transcrip
t accumulation during embryogenesis indicates that this gene may be re
gulated by other homeoproteins in addition to Deformed.