Pax genes encode for transcription factors essential for tissue development in many species. Pax8, the only member of the family expressed in the thyroid tissue, is involved in the morphogenesis of the gland and in the transcriptional regulation of thyroid-specific genes. TTF-1, a homeodomain-containing factor, is also expressed in the thyroid tissue and has been demonstrated to play a role in thyroid-specific gene expression. Despite the presence of Pax8 and TTF-1 also in a few other tissues, the simultaneous expression of the two transcription factors occurs only in the thyroid, supporting the idea that Pax8 and TTF-1 might cooperate to influence thyroid-specific gene expression. In this report, we describe a physical and functional interaction between these two factors. The fusion protein GST-Pax8 is able to bind TTF-1 present in thyroid or in non-thyroid cell extracts, and by using bacterial purified TTF-1 we demonstrate that the interaction is direct. By co-immunoprecipitation, we also show that the interaction between the two proteins occurs in vivo in thyroid cells. Tissue-specific transcriptional regulation is often mediated by a complex of cis-acting elements. The vast majority of the promoters of genes expressed in a cell type-specific fashion contains a variety of recognition sequences for tissue-specific and ubiquitous transcription factors. It is well known that tissue-specific transcriptional regulation is mediated by a set of transcription factors whose combination is unique to the cell type. Thyroid follicular cells, the most abundant cell population of the thyroid gland, represent a useful model system to elucidate the mechanism operating in the establishment and maintenance of cell type-specific expression. Thyrocytes are responsible for thyroid hormone synthesis and are characterized by the expression of a specific set of genes such as thyroglobulin (Tg) 1 and thyroperoxidase (TPO), which are exclusively expressed in this cell type (1, 2), and by the expression of genes expressed only in a few tissues other than the thyroid, such as the thyrotropin-stimulating hormone receptor and the sodium/ iodide symporter.The Tg and TPO promoters have been extensively studied, and multiple factors have been shown to be required for their expression (3, 4). To date, three transcription factors that specifically bind to and regulate these promoters have been cloned (2). The three transcription factors are as follows: thyroid transcription factor-1 (TTF-1), thyroid transcription factor-2 (TTF-2), and Pax8. TTF-1 (also named NKx 2.1 and T/EBP) is a homeodomain-containing protein expressed in embryonic diencephalon, thyroid, and lung (5). TTF-2 is a forkhead domaincontaining protein expressed in pituitary and thyroid (6), and Pax8 is a member of the murine Pax family of paired domaincontaining genes that is expressed in kidney, in the developing excretory system, and in the thyroid (7). We have focused our studies on the molecular mechanisms of action of TTF-1 and Pax8. These two transcription factors are pre...