). Having derived cellular extracts from TPA-treated cells, that are capable of reproducing this stimulation in vitro, we have examined the mechanism for this regulatory event. Using conditions that limit reinitiation and produce single rounds of transcription from active gene complexes, we find that the number of functional transcription complexes is increased in extracts prepared from TPA-induced cells. We have analyzed the activities of the transcription factors TFIIIB and TFIIIC derived from extracts prepared from TPA-induced and noninduced cells. Examination of the relative activities of TFIIIC showed that both its ability to reconstitute transcription with TFIIIB and RNA polymerase Im and its ability to stably bind to the DNA template are unchanged. However, the activity of TFIIIB derived from the TPA-induced cells is substantially increased compared with that derived from the noninduced cells. The differences in TFlIIB activity account for the differences in the overall transcriptional activities observed in the unfractionated extracts. Western blot analysis of the TATA-binding protein subunit of TFIIIB revealed that there is an increase in the amount of this polypeptide present in the induced cell extracts and TFIIIB fraction. Together, these results indicate that the TPA response in Drosophila cells stimulates specific transcription of RNA polymerase III genes by increasing the activity of the limiting transcription component, TFIIIB, and thereby increasing the number of functional transcription complexes.RNA polymerase (pol) III is responsible for the transcription of a variety of small cellular RNAs including tRNA, 5S RNA, and U6 RNA and virus-associated RNAs such as VAl and VA2 from adenovirus (for reviews, see references 20, 23, 47, and 74). The tRNA, 5S RNA, and VA RNA genes contain intragenic control regions, and 5'-flanking sequences of these genes may serve to modulate transcription efficiency. In the insect systems, however, 5'-flanking sequences are essential for transcription of these genes (14,60). Fractionation of cell extracts has shown that two factors, TFIIIB and TFIIIIC, in addition to RNA pol III, are required for the transcription of the tRNA and VA RNA class of genes, whereas the 5S RNA genes additionally require TFIIIA (57). Another class of RNA pol III genes including U6 RNA and 7S K RNA contains promoter elements exclusively in the 5'-flanking regions of these genes (for a review, see reference 37). Unlike the other RNA pol III genes, these genes appear to require a unique set of transcription factors in addition to TFIIIB and RNA pol III, including TFIID (40,44,59). Recent studies have demonstrated that the TATA-binding protein (TBP), a transcription factor previously thought to be RNA pol II specific, is also required for the transcription of all types of RNA pol III genes and RNA pol I genes (10,11,56,71). In the case of RNA pol III transcription, TBP appears to be an integral part of the TFIIIB complex (33,41,62,70 shown that RNA pol III genes form stable transcription complex...