We examined DNA methylation and DNase I hypersensitivity of the a-fetoprotein (AFP) and albumin gene region in hepatoma cell lines which showed drastic differences in the level of expression of these genes. We assayed for methylation of the CCGG sequences by using the restriction enzyme isoschizomers HpaH Many studies with different experimental systems have been carried out to elucidate the role that methylation of cytosine bases and change in chromatin structure might play in the regulation of gene expression (for reviews, see references 34 and 35).Controversial results concerning the relationship between the DNA methylation pattern and gene activity have been reported showing either a good correlation (23,47) or no correlation at all (13,46,57) between undermethylation and expression of a specific gene. Various studies involving in vitro methylation of a specific regulatory region of a gene followed by its introduction into eucaryotic cells revealed that DNA methylation does affect transcription (6,17,41,42). Recent studies indicate that undermethylation of only certain critical sites located in the 5' region of genes coding for tissue-specific proteins is necessary but not sufficient for their expression (24,30,56 (48,50). Of these variants, we chose to study an