Synthesis of the transport systems and enzymes mediating uptake and catabolism of nitrogenous compounds is sensitive to nitrogen catabolite repression. In spite of the widespread occurrence of the control process, little is known about its mechanism. We have previously demonstrated that growth of cells on repressive nitrogen sources results in a dramatic decrease in the steady-state levels of mRNA encoded by the allantoin and arginine catabolic pathway genes and of the transport systems associated with allantoin metabolism. The present study indentified the upstream activation sequences in the 5'-flanking regions of the allantoin system genes as the cisacting sites through which nitrogen catabolite repression is exerted.The levels of allantoin catabolic enzymes and transport systems in Saccharomyces cerevisiae are established by two opposing regulatory processes (1,3,6,7,9,14,25). The first, induction, is observed as an increase in allantoin system enzyme and permease activities when allophanate, the last intermediate of the pathway, is synthesized from allantoin or related metabolites (1, 2, 6-10, 12, 27). Induction can also be elicited by the gratuitous inducer, oxalurate (OXLU) (22). The second process, nitrogen catabolite repression (NCR), is observed as a marked decrease in the levels of catabolic enzymes and transport systems when cells are provided with nitrogen sources such as asparagine or glutamine (5-7). All allantoin system genes are sensitive to NCR.In spite of the widespread occurrence of NCR, little is known about its mechanism. Early genetic studies led to the now-accepted suggestion that NCR was a negatively acting process with a repressor binding site situated in the 5'-flanking region of the gene (11,16). With isolation of the allantoin and arginine system genes, we demonstrated that induction and NCR of CAR], DURJ,2, DAL4, DAL7, and DAL5 gene expression resulted in increased and decreased steady-state levels of the mRNAs encoded by these genes, respectively (8,12,20,23,27). This was consistent with the idea that both processes occur at transcription (8,12,20,23,27).Recent studies of the DAL5 and DAL7 5'-flanking sequences revealed that inducibility or lack of it correlates with the composition of cis-acting elements which they possess (21, 26). The DAL5 gene, which does not respond to inducer, was found to possess a single type of element, an upstream activation sequence (UAS). In contrast, the inducible DAL7 gene was found to possess three types of elements. The first element was the UAS indentified upstream of DAL5. The second element behaved as a negatively acting element or upstream repression sequence (URS). Neither element responded to inducer. A third element was found to be required for response to inducer and was designated the * Corresponding author. t Present address: Genetic Engineering Center, Korea Advanced Institute of Science and Technology, Cheongryang, Seoul, Korea. upstream induction sequence (UIS). Only when all three elements were present together was induction observe...