In contrast to the Escherichia coli lac operon, the yeast 1-galactosidase gene is positively regulated. In the 5'-noncoding region of the Kluyveromyces lactis LAC4 gene, we manped an upstream activation site (UAS) that is required for induction. This sequence, located between positions -435 and -326 from the start of translation, functions irrespective of its orientation and can confer lactose regulation to the heterologous CYC1 promoter. It is composed of at least two subsequences that must act in concert. One of these subsequences showed a strong homology to the UAS consensus sequence of the Saccharomyces cerevisiae GAL genes (E. Giniger, S. M. Varnum, and M. Ptashne, Cell 40:767-774, 1985). We propose that this region of homology located at about position -426 is a binding site for the product of the regulatory gene LAC9 which probably induces transcription of the LAC4 gene in a manner analogous to that of the GAL4 protein.The yeast Kluyveromyces lactis is a eucaryotic unicellular organism that can utilize lactose as a sole carbon source. It offers an interesting possibility in that the regulation of its LAC genes can be compared directly with the analogous lac operon of Escherichia coli. As is typical for eucaryotes these genes are not organized in an operon but are coordinately regulated (8,30). Both the LAC4 gene, encoding Igalactosidase (33), and the LAC12 gene, encoding lactose permease (34), are inducible by lactose and galactose. Their regulation is thereby closely coupled to that of the GAL genes. The lactose permease gene and the P-galactosidase gene have been cloned (9, 34) and have been shown to be tightly linked, mapping within 13 kilobase pairs (kbp) (34). The structural genes of the Leloir pathway enzymes GAL], GAL1O, and GAL7 (in analogy to the Saccharomyces cerevisiae genes) are also clustered and show the same gene order GAL7 GALIO GAL] as in S. cerevisiae (30).Recessive regulatory K. lactis mutants have been isolated (10, 32; M. Ruzzi and A. Walker-Jonah, unpublished data) in which expression of the LAC as well as the GAL genes (8; Ruzzi and Walker-Jonah, unpublished data) are affected. They fall into two classes: noninducible (lac9) and constitutive (lacJO) mutations (10, 32).In S. cerevisiae both the GAL genes and the MEL] gene, which encode a-galactosidase, are transcriptionally regulated by the products of the regulatory genes GAL4 and GAL80 (29; for a review, see reference 27). Recessive mutations in GAL4 are noninducible (11), and gal80 mutants are constitutive (12). It has been shown that the GAL4 protein binds to the 5'-noncoding regions of the genes regulated by galactose (2, 13), thereby activating transcription in the presence of galactose. Under noninducing conditions the GAL80 gene product probably inactivates the GAL4 protein (25,26,28 has been mapped (2, 13) and coincides with the GAL upstream activation sites (UASG) that were previously shown to be required for induction in cis (36).In K. lactis LAC4 is the best-characterized gene of lactose-galactose metabolism. The gene has...