The retinoic acid receptors (RARs) recruit coactivator and corepressor prot
eins to activate or repress the transcription of target genes depending on
the presence of retinoic acid (RA). Despite a detailed molecular understand
ing of how corepressor complexes function, there is no in vivo evidence to
support a necessary function for RAR-mediated repression. Signaling through
RARs is required for patterning along the anteroposterior (A-P) axis, part
icularly in the hindbrain and posterior, although the absence of RA is requ
ired for correct anterior patterning. Because RARs and corepressors are pre
sent in regions in which RA is absent, we hypothesized that repression medi
ated through unliganded RARs might be important for anterior patterning. To
test this hypothesis, specific reagents were used that either reduce or au
gment RAR-mediated repression. Derepression of RAR signaling by expressing
a dominant-negative corepressor resulted in embryos that exhibited phenotyp
es similar to those treated by RA. Anterior structures such as forebrain an
d cement gland were greatly reduced, as was the expression of molecular mar
kers. Enhancement of target gene repression using an RAR inverse agonist re
sulted in up-regulation of anterior neural markers and expansion of anterio
r structures. Morpholino antisense oligonucleotide-mediated RAR alpha loss-
of-function phenocopied the effects of RA treatment and dominant-negative c
orepressor expression. Microinjection of wild-type or dominant-negative RAR
alpha rescued the morpholino phenotype, confirming that RAR is functioning
anteriorly as a transcriptional repressor. Lastly, increasing RAR-mediated
repression potentiated head-inducing activity of the growth factor inhibit
or cerberus, whereas releasing RAR-mediated repression blocked cerberus fro
m inducing ectopic heads. We conclude that RAR-mediated repression of targe
t genes is critical for head formation. This requirement establishes an imp
ortant biological role for active repression of target genes by nuclear hor
mone receptors and illustrates a novel function for RARs during vertebrate
development.