The Drosophila melanogaster Nipped-B protein facilitates transcriptional activation of the cut and Ultrabithorax genes by remote enhancers. Sequence homologues of Nipped-B, Scc2 of Saccharomyces cerevisiae, and Mis4 of Schizosaccharomyces pombe are required for sister chromatid cohesion during mitosis. The evolutionarily conserved Cohesin protein complex mediates sister chromatid cohesion, and Scc2 and Mis4 are needed for Cohesin to associate with chromosomes. Here, we show that Nipped-B is also required for sister chromatid cohesion but that, opposite to the effect of Nipped-B, the stromalin/Scc3 component of Cohesin inhibits long-range activation of cut. To explain these findings, we propose a model based on the chromatin domain boundary activities of Cohesin in which Nipped-B facilitates cut activation by alleviating Cohesin-mediated blocking of enhancer-promoter communication.The available evidence, derived largely from studies with Saccharomyces cerevisiae, supports the idea that transcriptional activator proteins recruit basal transcription machinery and chromatin-modifying enzymes to the promoter (43). In essence, activator proteins increase the local concentration of the transcriptional machinery near the promoter. Most yeast activators bind less than a kilobase upstream of the promoters they activate, and looping of the chromatin between the activator and the promoter accommodates interactions. Consistent with this model, the yeast activators tested work poorly when positioned more than a few hundred base pairs upstream of the promoter (53).Although it explains much of yeast gene activation, the localconcentration model does not adequately explain long-range activation by metazoan enhancers, which are often tens of kilobases from the promoter. Based on theoretical calculations, two sequences separated by several kilobases in DNA, or in various forms of chromatin, do not have a local concentration relative to each other greater than that of the estimated total concentration of all the promoters in a nucleus (46). In addition to these theoretical considerations, it was found experimentally that site-specific recombination between two sites separated by several kilobases in mammalian cells occurs slowly compared to recombination between two sites separated by a kilobase or so (45). Thus, an enhancer located several kilobases from a promoter is not expected to contact the promoter specifically or efficiently if it is dependent on random diffusion alone. Studies with the human -globin locus using two different techniques, however, indicate that an enhancer in the locus control region located some 40 to 60 kb from the globin genes is in close proximity to a globin gene promoter when that promoter is activated (8,56). This suggests that mechanisms exist to facilitate enhancer-promoter contact over large distances.Studies of Drosophila melanogaster have identified sequences that facilitate particular long-range enhancer-promoter interactions. The large interval separating the iab-7 enhancer and the Abd-B gene ...