The Ess1 prolyl isomerase in Saccharomyces cerevisiae regulates RNA polymerase II (pol II) by isomerizing peptide bonds within the pol II carboxy-terminal domain (CTD) heptapeptide repeat (YSPTSPS). Ess1 preferentially targets the Ser5-Pro6 bond when Ser5 is phosphorylated. Conformational changes in the CTD induced by Ess1 control the recruitment of essential cofactors to the pol II complex and may facilitate the ordered transition between initiation, elongation, termination, and RNA processing. Here, we show that Ess1 associates with the phospho-Ser5 form of polymerase in vivo, is present along the entire length of coding genes, and is critical for regulating the phosphorylation of Ser7 within the CTD. In addition, Ess1 represses the initiation of cryptic unstable transcripts (CUTs) and is required for efficient termination of mRNA transcription. Analysis using strains lacking nonsense-mediated decay suggests that as many as half of all yeast genes depend on Ess1 for efficient termination. Finally, we show that Ess1 is required for trimethylation of histone H3 lysine 4 (H3K4). Thus, Ess1 has direct effects on RNA polymerase transcription by controlling cofactor binding via conformationally induced changes in the CTD and indirect effects by influencing chromatin modification. P eptidyl-prolyl isomerases (PPIases) are enzymes that noncovalently modify target proteins by catalyzing the rotation of the peptide bond preceding proline residues. PPIases catalyze both cis¡trans and trans¡cis peptide bond isomerizations. The resulting changes in protein conformation can have profound functional consequences, such as altering protein-protein interactions, protein stability, or the suitability of a protein as a target for further modifications, e.g., phosphorylation/dephosphorylation (46,47,56).Three classes of PPIases have been identified (5). The parvulin family of PPIases, of which Ess1 (essential 1) protein in Saccharomyces cerevisiae is the founding eukaryotic member, is distinct from the well-studied cyclophilin and FK506-binding protein (FKBP) families, which are targets of immunosuppressive drugs. In yeast, Ess1 is required for growth (20), and its human homolog, Pin1, complements yeast ess1 mutants (32). Pin1 has been linked to a number of signaling pathways in human cells and seems to target a wide variety of proteins for isomerization (33,70). In contrast, extensive genetic studies have thus far identified only RNA polymerase II (pol II) as the target of Ess1 in yeast (21,27,65).Within the RNA pol II complex, Ess1 targets the carboxy-terminal domain (CTD) of the largest subunit, Rpb1 (38, 65), which is composed of 26 repeats of the heptapeptide Y 1 S 2 P 3 T 4 S 5 P 6 S 7 (62). Each repeat contains two potential Ess1 substrate binding sites (S-P), where the serines are known to be phosphorylated (24,43). In vitro, Ess1 binds and isomerizes phosphorylated Ser5-Pro6 (pSer5-Pro6) within the heptad repeat about 5-fold better than pSer2-Pro3 (17). Ess1 stimulates pSer5-Pro6 isomerization within peptide substrates fr...