The estrogen receptor (ER) belongs to a superfamily of ligand-inducible transcription factors. Functions of these proteins (dimerization, DNA binding, and interaction with other transcription factors) are modulated by binding of their corresponding ligands. It is, however, controversial whether various ER ligands affect the receptor's ability to bind its specific DNA element (ERE).By using real time interaction analysis we have investigated the kinetics of human (h)ER binding to DNA in the absence and presence of 17-estradiol, 17␣-ethynyl estradiol, analogs of tamoxifen, raloxifene, and ICI-182,780. We show that ligand binding dramatically influences the kinetics of hER interaction with specific DNA. We have found that binding of estradiol induces the rapid formation of a relatively unstable ER⅐ERE complex, and binding of ICI-182,780 leads to slow formation (k a is approximately 10 times lower) of a stable receptor-DNA complex (k d is almost 2 orders of magnitude lower). Therefore, binding of estradiol accelerates the frequency of receptor-DNA complex formation more than 50-fold, compared with unliganded ER, and more than 1000-fold compared with ER liganded with ICI-182,780. We hypothesize that a correlation exists between the rate of gene transcription and the frequency of receptor-DNA complex formation. We further show that a good correlation exists between the kinetics of hER-ERE interaction induced by a ligand and its biological effect.Steroid hormones are widely distributed small, lipophilic molecules that participate in intracellular communication and control a wide spectrum of developmental and physiological processes. Their effects are mediated by specific intracellular receptors, a family of proteins that are characterized by a high affinity for the corresponding hormones and an ability to discriminate between structurally closely related ligands. These ligand-inducible receptors can modulate transcription of target genes by virtue of their binding to a specific sequence on DNA in target promoters known as hormone response elements. Although distinct proteins, these receptors are members of a large superfamily of steroid hormone receptors and share many common structural and functional features (1-4).Binding of 17-estradiol (E 2 ) 1 to estrogen receptor (ER) is followed by a conformational change, leading to dissociation of the receptor from the complex with the heat shock proteins hsp90 and p59 (5, 6), dimerization (7,8), and activation of DNA binding. After DNA binding the activated receptor can interact with basal transcription factors (9). These interactions are thought to stabilize the preinitiation complex at the promoter, allowing RNA polymerase to initiate transcription (10). Recently a number of transcriptional intermediary factors have been identified that can modify estrogen responsiveness, and several of these proteins interact with the ligand binding domain of the ER in a ligand-dependent manner (11-13). It is obvious that the ligand plays a key role in initiating this cascade of events. ...