Functional control of the transcription factor Runx2 is crucial for normal bone formation. Runx2 is detectable throughout osteoblast development and maturation and temporally regulates several bone-specific genes. In this study, we identified a novel post-translational mechanism regulating Runx2-dependent activation of the osteocalcin promoter. A functional binding site for the high mobility group protein lymphoid enhancerbinding factor 1 (LEF1) was found adjacent to the proximal Runx2-binding site in the osteocalcin promoter. In transcription assays, LEF1 repressed Runx2-induced activation of the mouse osteocalcin 2 promoter in several osteoblast lineage cell lines. Mutations in the LEF1-binding site increased the basal activity of the osteocalcin promoter; however, the LEF1 recognition site in the osteocalcin promoter was surprisingly not required for LEF1 repression. A novel interaction between the DNAbinding domains of Runx2 and LEF1 was identified and found crucial for LEF1-mediated repression of Runx2. LEF1 is a nuclear effector of the Wnt/LRP5/-catenin signaling pathway, which is also essential for osteoblast proliferation and normal skeletal development. A constitutively active -catenin enhanced LEF1-dependent repression of Runx2. These data identify a novel mechanism of regulating Runx2 activity in osteoblasts and link Runx2 transcriptional activity to -catenin signaling.Runx2 (Cbfa1, AML-3, PEBP2␣A) is one of three mammalian Runt domain factors and is essential for bone formation (1). Runx2 deficiency is developmentally lethal because it inhibits osteoblast development, chondrocyte differentiation in some skeletal elements, and vascular invasion into cartilage to prevent skeletal ossification (2-4). Moreover, a dominant-negative Runx2 protein prevents osteoblast differentiation in adult mice without decreasing osteoblast numbers (5). Runx2 haploinsufficiency hinders intramembranous bone formation and causes the rare skeletal disorder, cleidocranial dysplasia (6). Interestingly, Runx2 overexpression induces bone fragility by blocking osteoblast differentiation and enhancing bone resorption (7,8).These genetic studies demonstrate that cellular control of Runx2 expression levels and function is crucial for skeletal development.At the molecular level, Runx2 activity is regulated by multiple transcriptional and post-translational mechanisms (9). Runx proteins activate or repress gene expression by binding the DNA sequence, TGPuGGTPu (10). Runx-binding sites are often necessary but are not sufficient for transcriptional regulation of tissue-specific genes; thus, it has been hypothesized that Runx proteins are organizers that facilitate the assembly of transcriptional regulatory complexes on gene regulatory elements (11,12). Runx factors, in fact, interact with numerous transcription factors (e.g. AP1, C/EBP, Ets1, and SMADs) and transcriptional co-factors (e.g. p300, ALY, mSin3A, TLE, and HDAC6) to regulate tissue-specific gene expression (13-16). Runx1-dependent trans-activation of the T cell receptor en...