DNA methylation can contribute to transcriptional silencing through several
transcriptionally repressive complexes, which include methyl-CpG binding d
omain proteins (MBDs) and histone deacetylases (HDACs). We show here that t
he chief enzyme that maintains mammalian DNA methylation, DNMT1, can also e
stablish a repressive transcription complex. The non-catalytic amino termin
us of DNMT1 binds to HDAC2 and a new protein, DMAP1 (for DNMT1 associated p
rotein), and can mediate transcriptional repression. DMAP1 has intrinsic tr
anscription repressive activity, and binds to the transcriptional co-repres
sor TSG101. DMAP1 is targeted to replication foci through interaction with
the far N terminus of DNMT1 throughout S phase, whereas HDAC2 joins DNMT1 a
nd DMAP1 only during late S phase, providing a platform for how histones ma
y become deacetylated in heterochromatin following replication. Thus, DNMT1
not only maintains DNA methylation, but also may directly target, in a her
itable manner, transcriptionally repressive chromatin to the genome during
DNA replication.