The generally accepted paradigm of transcription by regulated recruitment defines sequence-specific transcription factors and coactivators as separate categories that are distinguished by their abilities to bind DNA autonomously. The C 2 H 2 zinc finger protein Zac1, with an established role in canonical DNA binding, also acts as a coactivator. Commensurate with this function, p73, which is related to p53, is here shown to recruit Zac1, together with the coactivators p300 and PCAF, to the p21 Cip1 promoter during the differentiation of embryonic stem cells into neurons. In the absence of autonomous DNA binding, Zac1's zinc fingers stabilize the association of PCAF with p300, suggesting its scaffolding function. Furthermore, Zac1 regulates the affinities of PCAF substrates as well as the catalytic activities of PCAF to induce a selective switch in favor of histone H4 acetylation and thereby the efficient transcription of p21 Cip1 . These results are consistent with an authentic coactivator function of Zac1's C 2 H 2 zinc finger DNA-binding domain and suggest coactivation by sequencespecific transcription factors as a new facet of transcriptional control.The transcriptional activation of eukaryotic genes involves the regulated assembly of multiprotein complexes on enhancers and promoters (9,22,23). The specificity of this process is decisively controlled by sequence-specific DNA-binding transcription factors (henceforth termed "sequence-specific factors") which play a key role in interpreting and transmitting the information contained in the primary DNA sequence to the factors and cofactors that, in turn, mediate the synthesis of RNA transcripts from the DNA template.Sequence-specific factors typically contain a specific DNAbinding domain that directly contacts DNA, a multimerization domain that allows the formation of homo-or heteromultimers, and a transcription activation domain. The binding of sequencespecific factors to regulatory DNA elements, through which they are tethered to their correct location, is a prerequisite for gene regulation. This allows the positioning of the activation domain in the vicinity of the initiation complex and the subsequent recruitment of an active transcription complex (30). The sequential order of these events underlies the concept of gene activation via regulated recruitment (29).Sequence-specific factors that do not directly contact the basal transcription machinery often bind to different classes of interconnecting coregulators (for a minimal classification see reference 22).Among these, primary coactivators bind directly to sequence-specific factors and often contain relevant enzymatic activities that are necessary for changing chromatin structure from a quiescent state to one that permits active gene transcription; prototypical examples are the coactivators p300/CBP and PCAF, which are endowed with potent histone acetyltransferase (HAT) activities (21). In contrast, secondary coactivators dock onto sequence-specific factors and form a scaffold, thus facilitating the recruitm...