In this study, we show that the haplo-enhancer effect of JIL-1 has the ability to counterbalance the haplo-suppressor effect of both Su(var)3-9 and Su(var)2-5 on position-effect variegation, providing evidence that a finely tuned balance between the levels of JIL-1 and the major heterochromatin components contributes to the regulation of gene expression.T HE essential JIL-1 histone H3S10 kinase (Jin et al. 1999;Wang et al. 2001) is a major regulator of chromatin structure (Deng et al. 2005(Deng et al. , 2008) that functions to maintain euchromatic domains while counteracting heterochromatization and gene silencing (Ebert et al. 2004;Lerach et al. 2006;Zhang et al. 2006;Bao et al. 2007). In the absence of the JIL-1 kinase, the major heterochromatin markers H3K9me2, HP1a [Su(var)2-5], and Su(var)3-7 spread to ectopic locations on the chromosome arms Deng et al. 2007Deng et al. , 2010. These observations suggested a model for a dynamic balance between euchromatin and heterochromatin (Ebert et al. 2004;Zhang et al. 2006;Deng et al. 2010), where, as can be monitored in position-effect variegation (PEV) arrangements, the boundary between these two states is determined by antagonistic functions of a euchromatic regulator (JIL-1) and the major determinants of heterochromatin assembly, e.g., Su(var)3-9, HP1a, and Su(var)3-7 (for review see Weiler and Wakimoto 1995;Girton and Johansen 2008). In support of this model, Deng et al. (2010) recently showed that Su(var)3-7 and JIL-1 loss-of-function mutations have an antagonistic and counterbalancing effect on gene expression using PEV assays; however, potential dynamic interactions between JIL-1 and the other two heterochromatin genes, Su(var)3-9 and Su(var)2-5, were not addressed in this study. Interestingly, in other genetic interaction assays monitoring the lethality as well as the chromosome morphology defects associated with the null JIL-1 phenotype, only a reduction in the dose of the Su ( ). Thus, these findings indicate that while Su(var)3-9 activity may be a major factor in the lethality and chromatinstructure perturbations associated with loss of the JIL-1 histone H3S10 kinase, these effects are likely to be uncoupled from HP1a and, to a lesser degree, from Su(var)3-7. This raises the question of whether JIL-1 dynamically interacts with the two other heterochromatin genes, Su(var)2-5 and Su(var)3-9, in regulating gene expression, as it does with Su (var)3-7.To answer this question, we explored the effect of various combinations of loss-of-function alleles of JIL-1 and Su(var) 3-9 or Su(var)2-5 on PEV caused by the P-element insertion line 118E-10 (Wallrath and Elgin 1995;Wallrath et al. 1996). Insertion of this P element (P[hsp26-pt, hsp70-w]) into euchromatic sites results in a uniform red-eye phenotype whereas insertion into a known heterochromatin region of the fourth chromosome results in a variegating eye phenotype (Cryderman et al. 1998;Bao et al. 2007) (Figures 1 and 2). It has been demonstrated that loss-of-function JIL-1 alleles can act as haplo-en...