The discovery of numerous hypermethylated promoters of tumour-suppressor ge
nes, along with a better understanding of gene-silencing mechanisms, has mo
ved DNA methylation from obscurity to recognition as an alternative mechani
sm of tumour-suppressor inactivation in cancer. Epigenetic events can also
facilitate genetic damage, as illustrated by the increased mutagenicity of
5-methylcytosine and the silencing of the MLH1 mismatch repair gene by DNA
methylation in colorectal tumours. We review here current mechanistic under
standing of the role of DNA methylation in malignant transformation, and su
ggest Knudson's two-hit hypothesis should now be expanded to include epigen
etic mechanisms of gene inactivation.