The type of basal promoter determines the regulated or constitutive mode of transcription in the common control region of the yeast gene pair GCY1/RIO1.

The yeast genes, GCY1 and RIO1, are transcribed divergently from the 869-base pair intergenic region. GCY1 is inducible by galactose about 25-fold due to Gal4p-binding to a single UASGAL, whereas RIO1 is constitutively expressed. GCY1 has a TATA box obeying the consensus TATAAA, whereas the RIO1 5'-upstream region lacks such a motif. In vitro mutagenesis of the TATA motif of GCY1, on the one hand, and introduction of a TATA-element into the promoter of RIO1, on the other hand, as well as inversion of the intergenic region have revealed that transcription of GCY1 and RIO1 is only regulated by Gal4p when a consensus TATA motif is included in their core promoters but not in its absence. The data imply that only transcription complexes that assemble at a consensus TATA box are compatible with specific transactivators, such as Gal4p. As a result, the adjacent gene is subject to regulated expression. By contrast, if a consensus TATA sequence is absent, the initiation complex does not respond to regulatory transcription factors, and consequently, the respective gene is constitutively transcribed. On the other hand, we show that two blocks of homo-oligomeric (dA.dT) sequences do not function as boundary sequences that might confine regulatory action of Gal4p to GCY1.