Aristaless related homeodomain protein (Arx) specifies the formation of the pancreatic islet ␣-cell during development. This cell type produces glucagon, a major counteracting hormone to insulin in regulating glucose homeostasis in adults. However, little is known about the factors that regulate Arx transcription in the pancreas. In this study, we showed that the number of Arx ؉ cells was significantly reduced in the pancreata of embryos deficient for the Islet-1 (Isl-1) transcription factor, which was also supported by the reduction in Arx mRNA levels. Chromatin immunoprecipitation analysis localized Isl-1 activator binding sites within two highly conserved noncoding regulatory regions (Re) in the Arx locus, termed Re1 (؉5.6 to ؉6.1 kb) and Re2 (؉23.6 to ؉24 kb). Using cell line-based transfection assays, we demonstrated that a Re1-and Re2-driven reporter was selectively activated in islet ␣-cells, a process mediated by Isl-1 in overexpression, knockdown, and site-directed mutation experiments. Moreover, Arx mRNA levels were upregulated in islet ␣-cells upon Isl-1 overexpression in vivo. Isl-1 represents the first known activator of Arx transcription in ␣-cells, here established to be acting through the conserved Re1 and Re2 control domains.Pancreatic islets play an important role in regulating carbohydrate metabolism through the production and secretion of hormones. The five cell types found in the islet are ␣-, -, ␦-, ⑀-, and pancreatic polypeptide cells that, respectively, produce the hormones glucagon, insulin, somatostatin, ghrelin, and pancreatic polypeptide (1). The hormonal products of the predominant ␣-and -cells act in peripheral tissues in a counter-regulatory manner to control blood glucose homeostasis, with insulin promoting cellular glucose uptake and storage and glucagon promoting its release. Notably, although insulin resistance and -cell dysfunction are the major causes of diabetes, the sustained, unregulated secretion of glucagon from ␣-cells also contributes to hyperglycemia and the associated complications (2-6). In fact, suppression of glucagon activity or levels has been shown to be a promising treatment for diabetics (3, 6 -9). Unfortunately, and in contrast to islet -cells, our understanding of the factors involved in controlling ␣-cell differentiation and function is quite limited (1, 10).Glucagon ϩ cells first appear at embryonic day (E) 9.5 3 in mice, followed by insulin ϩ cells a day later (1). At around E13.5, a major expansion of a distinct population of hormone-producing cells begins to occur, with only these cells becoming mature islet ␣-and -cells (11). A variety of distinct transcription factors are required during development for their production (1), including those that are necessary early in specifying the ␣-(e.g. Arx) and -(e.g. Pax4 and Nkx6.1) lineages and others acting later in cell maintenance and maturation (e.g. MafB, Foxa2, Isl-1, and Pdx1) (12)(13)(14)(15)(16)(17)(18)(19)(20).Arx plays an essential role in islet ␣-cell formation. Expression of this transcrip...