Specificity in transcriptional regulation lies in a large part in the
specificity of DNA binding by transcription factors. One group of tran
scription factors which are of great interest for studying transcripti
onal specificity is the Pax/Homeodomain (Pax/HD) proteins which contai
n two conserved DNA binding domains, a paired domain (PD) and a Paired
-class homeodomain (HD). The Pax/HD proteins can bind to at least thre
e types of specific DNA sequences: the PD binding sites, the dimeric H
D binding sites and a composite HD and PD binding site. We propose tha
t Pax/HO proteins regulate different subsets of their target genes thr
ough modular binding to one of these three specific sequences. We show
that, in a tissue culture system, a member of the Pax/HD family, Pair
ed, is able to activate transcription after binding through either its
PD or its HD. The transactivation mediated by one domain does not req
uire DNA binding of the other domain. Furthermore, binding sites speci
fic for the PD of Paired are sufficient to mediate embryonic expressio
n of a reporter gene in a paired-like pattern. The expression of the r
eporter gene is dependent on wild type paired function and, in a prd m
utant background, it can be rescued by an exogenous paired gene encodi
ng a protein whose HD is not able to bind to DNA. Finally, we show tha
t the Paired protein uses differently its C-terminal activation domain
when transactivation is mediated through its PD or its HD. These resu
lts and recent evidence from other Pax/HD proteins strongly suggest th
at this class of proteins is able to achieve specific and modular tran
scriptional regulation through its multiple DNA binding domains.