The aryl hydrocarbon receptor (AhR) is a ligand-activated transcription factor that is known as a mediator of toxic responses. Recently, it was shown that the AhR has dual functions. Besides being a transcription factor, it also possesses an intrinsic E3 ubiquitin ligase function that targets, e.g., the steroid receptors for proteasomal degradation. The aim of this study was to identify the molecular switch that determines whether the AhR acts as a transcription factor or an E3 ubiquitin ligase. To do this, we used the breast cancer cell line MCF7, which expresses a functional estrogen receptor alpha (ER␣) signaling pathway. Our data suggest that aryl hydrocarbon receptor nuclear translocator (ARNT) plays an important role in the modulation of the dual functions of the AhR. ARNT knockdown dramatically impaired the transcriptional activation properties of the ligand-activated AhR but did not affect its E3 ubiquitin ligase function. The availability of ARNT itself is modulated by another basic helix-loop-helix (bHLH)-Per-ARNT-SIM (PAS) protein, the repressor of AhR function (AhRR). MCF7 cells overexpressing the AhRR showed lower ER␣ protein levels, reduced responsiveness to estradiol, and reduced growth rates. Importantly, when these cells were used to produce estrogendependent xenograft tumors in SCID mice, we also observed lower ER␣ protein levels and a reduced tumor mass, implying a tumor-suppressive-like function of the AhR in MCF7 xenograft tumors.KEYWORDS aryl hydrocarbon receptor, molecular switch, E3 ubiquitin ligase, transcription factor, aryl hydrocarbon receptor nuclear translocator, aryl hydrocarbon receptor repressor B asic helix-loop-helix (bHLH)-Per-aryl hydrocarbon receptor (AhR) nuclear translocator (ARNT)-SIM (PAS) proteins function as biological sensors that respond to physiological stimuli and environmental signals to mediate adaptive cellular responses. In general, these proteins form heterodimers that consist of a signal-induced subunit and an unregulated, ubiquitously expressed subunit (1). A member of the family of bHLH-PAS proteins is the AhR. Initially identified by Poland and Knutson (2) as a binding site for planar, nonhalogenated, and halogenated xenobiotics, in particular the highly toxic 2,3,7,8-tetrachlorodibenzo-p-dioxin (TCDD), the AhR was viewed for a long time as a mediator of xenobiotic-induced toxicity and carcinogenesis. However, mouse knockdown studies have revealed a role for the AhR beyond xenobiotic-induced toxicity and carcinogenesis. For example, the AhR has been shown to be involved in fetal liver development (3), immune cell modulation and differentiation (4-6), and gastrointestinal homeostasis (7, 8). The developmental defects observed in AhR Ϫ/Ϫ mice and the strong conservation of the AhR throughout evolution (for a review, see reference 9)