Heterochromatin protein 1 (HP1) is localized at heterochromatin sites where
it mediates gene silencing(1,2). The chromo domain of HP1 is necessary for
both targeting and transcriptional repression(3,4). In the fission yeast S
chizosaccharomyces pombe, the correct localization of Swi6 (the HP1 equival
ent) depends on Clr4, a homologue of the mammalian SUV39H1 histone methylas
e(5,6). Both Clr4 and SUV39H1 methylate specifically lysine 9 of histone H3
(ref. 6). Here we show that HP1 can bind with high affinity to histone H3
methylated at lysine 9 but not at lysine 4. The chromo domain of HP1 is ide
ntified as its methyl-lysine-binding domain. A point mutation in the chromo
domain, which destroys the gene silencing activity of HP1 in Drosophila(3)
, abolishes methyl-lysine-binding activity. Genetic and biochemical analysi
s in S. pombe shows that the methylase activity of Clr4 is necessary for th
e correct localization of Swi6 at centromeric heterochromatin and for gene
silencing. These results provide a stepwise model for the formation of a tr
anscriptionally silent heterochromatin: SUV39H1 places a 'methyl marker' on
histone H3, which is then recognized by HP1 through its chromo domain. Thi
s model may also explain the stable inheritance of the heterochromatic stat
e.