Lateral organ polarity in Arabidopsis is regulated by antagonistic interactions between genes that promote either adaxial or abaxial identity, but the molecular basis of this interaction is largely unknown. We show that the adaxial regulator ASYMMETRIC LEAVES2 (AS2) is a direct target of the abaxial regulator KANADI1 (KAN1), and that KAN1 represses the transcription of AS2 in abaxial cells. Mutation of a single nucleotide in a KAN1 binding site in the AS2 promoter causes AS2 to be ectopically expressed in abaxial cells, resulting in a dominant, adaxialized phenotype. We also show that the abaxial expression of KAN1 is mediated directly or indirectly by AS2. These results demonstrate that KAN1 acts as a transcriptional repressor and that mutually repressive interactions between KAN1 and AS2 contribute to the establishment of adaxial-abaxial polarity in plants.A daxial-abaxial polarity in plants is specified by interactions between genes that individually specify either adaxial or abaxial identity (1, 2). In Arabidopsis, adaxial identity is specified by class III homeodomain leucine zipper (HD-ZIPIII) transcription factors (3, 4), the transcription factor ASYMMETRIC LEAVES2 (AS2) (5, 6), and the transacting siRNA tasiARF (7), whereas abaxial identity is specified by KANADI (KAN) (8, 9), YABBY (YAB) (10, 11), AUXIN RESPONSE FACTOR (ARF) (12), and LITTLE ZIPPER (ZPR) (13) transcription factors and by the miRNAs miR165/miR166 (14-16). Genetic analysis indicates that many of these genes interact antagonistically: loss-of-function mutations in adaxial genes typically produce an abaxialized phenotype that is accompanied by the expanded expression of abaxial genes, whereas loss-of-function mutations in abaxial genes produce an adaxialized phenotype that is associated with the expanded expression of adaxial genes; mutations or transgenes that produce ubiquitous expression of these genes have a phenotype opposite to that of the loss-offunction mutations. miR165/166 and tasiARF repress the expression of their targets, respectively, HD-ZIPIII genes and ARF3/ETTIN, by directing the cleavage of the transcripts of these genes (14, 17). The molecular basis for the antagonistic interactions between other adaxial and abaxial regulators is unknown.KAN1, KAN2, and KAN3 are members of the GARP family of transcription factors and act redundantly to promote abaxial identity in both lateral organs and the shoot axis. These genes are expressed in abaxial cells of lateral organs and peripheral cells of the hypocotyl and stem (9, 16). Loss-of-function mutations in individual genes have relatively weak effects on organ polarity (9, 18), but kan1 kan2 (8) and kan1 kan2 kan3 (16) mutants are strongly adaxialized and resemble plants ectopically expressing the HD-ZIPIII genes PHB, PHV, and REV (3,15) or the LOB gene AS2 (5, 6). Consistent with this observation, PHB is abaxially expressed in kan1 kan2 kan3 triple mutants (16). The effect of kan on the expression of AS2 has not been examined.Here, we show that KAN1 promotes abaxial identity by di...