Mutations in the human genes encoding hepatocyte nuclear factors (HNF) 1␣, 1, 4␣, and IPF1(PDX1͞IDX1͞STF1) result in pancreatic  cell dysfunction and diabetes mellitus. In hepatocytes, hnf4␣ controls the transcription of hnf1␣, suggesting that this same interaction may operate in  cells and thus account for the common diabetic phenotype. We show that, in pancreatic islet and exocrine cells, hnf4␣ expression unexpectedly depends on hnf1␣. This effect is tissue-specific and mediated through direct occupation by hnf1␣ of an alternate promoter located 45.6 kb from the previously characterized hnf4␣ promoter. Hnf1␣ also exerts direct control of pancreatic-specific expression of hnf4␥ and hnf3␥. Hnf1␣ dependence of hnf4␣, hnf4␥, hnf3␥, and two previously characterized distal targets (glut2 and pklr) is established only after differentiated cells arise during pancreatic embryonic development. These studies define an unexpected hierarchical regulatory relationship between two genes involved in human monogenic diabetes in the cells, which are relevant to its pathophysiology. Furthermore, they indicate that hnf1␣ is an essential component of a transcription factor circuit whose role may be to maintain differentiated functions of pancreatic cells.