The ars-l+ gene of Neurospora crassa encodes the enzyme arylsulfatase. ars-l+ is in a group of highly regulated sulfur-related structural genes that are expressed under conditions of sulfur limitation and are under coordinate control of the cys-3+ and scon+ regulatory genes. The ars-l+ gene was cloned by chromosome walking from the qa gene cluster, using a lambda library. Cotransformation of an N. crassa ars-1 mutant with the isolated lambda clones and the benomyl resistance gene, followed by assay for arylsulfatase activity, was used to screen for the ars-l+ gene. Further confirmation that the cloned segment mapped to the ars-l+ locus was obtained by restriction-fragment-length polymorphism analysis. Northern (RNA) blot analysis showed that the ars-l + gene was transcribed to give an mRNA of 2.3 kilobases. In wild-type cells, the ars-1 + transcript was abundant under sulfur-derepressing conditions but absent under repressing conditions. Time course analysis showed that the appearance of ars-l+ message in sulfur-derepressed cultures paralleled the appearance of arylsulfatase enzyme activity. In addition, transcription of ars-l+ was detected only under derepressing conditions in a nuclear transcription assay. In a cys-3 regulatory mutant that was unable to synthesize arylsulfatase (or other sulfur-controlled enzymes), there was no ars-l+ transcript under repressing or derepressing conditions. In a temperature-sensitive cys-3 mutant, the ars-l + transcript was present only at the permissive growth temperature and under sulfur derepression. A negative regulatory mutant, sconC, displayed both constitutive expression of arylsulfatase enzyme activity and content of ars-l + message.In the filamentous fungus Neurospora crassa, the synthesis of sets of enzymes in global areas of metabolism such as nitrogen, phosphorus, and sulfur metabolism is highly regulated (24, 26). The sulfur regulatory circuit of N. crassa provides a model system for studying coordinate gene regulation and how a cell regulates its sulfur status. The sulfur control system is composed of a genetically defined set of trans-acting regulatory genes and a set of structural genes that encode enzymes used in the uptake and assimilation of a variety of sulfur compounds (6,26). When cultures of N. crassa are grown under conditions of sulfur limitation (i.e., derepressing conditions), then the set of sulfur-related genes is expressed in a coordinate manner. The structural genes involved encode for arylsulfatase, choline sulfatase, choline sulfate permease, methionine permease, sulfate permeases I and II, and an extracellular protease. None of the known genes in the sulfur regulatory circuit are linked (14,19,23,36).An important part of the sulfur control system involves the positive regulatory gene, cys-3+. In cys-3 mutants there is a pleiotropic loss of the entire set of sulfur-controlled enzymes (25). Paietta et al. (34) cloned the cys-3+ regulatory gene, and subsequent work (12) has shown that the encoded product is a 25.9-kilodalton protein that contains ...