Freud-1/CC2D1A is a transcriptional repressor of the serotonin-1A receptor gene and was recently genetically linked to non-syndromic mental retardation. To identify new Freud-1 gene targets, data base mining for Freud-1 recognition sequences was done. A highly homologous intronic element (D2-DRE) was identified in the human dopamine-D2 receptor (DRD2) gene, and the role of Freud-1 in regulating the gene at this site was assessed. Recombinant Freud-1 bound specifically to the D2-DRE, and a major protein-D2-DRE complex was identified in nuclear extracts that was supershifted using Freud-1-specific antibodies. Endogenous Freud-1 binding to the D2-DRE in cells was detected using chromatin immunoprecipitation. The D2-DRE conferred strong repressor activity in transcriptional reporter assays that was dependent on the Freud-1 recognition sequence. In three different human cell lines, the level of Freud-1 protein was inversely related to DRD2 expression. Knockdown of endogenous Freud-1 using small interfering RNA resulted in an up-regulation of DRD2 RNA and binding sites, demonstrating a crucial role for Freud-1 in DRD2 regulation. A previously uncharacterized single nucleotide A/G polymorphism (rs2734836) was located adjacent to the D2-DRE and conferred allele-specific Freud-1 binding and repression, with the major G-allele having reduced activity. These studies demonstrate a key role for Freud-1 to regulate DRD2 expression and provide the first mechanistic insights into its transcriptional regulation. Allele-specific regulation of DRD2 expression by Freud-1 may possibly associate with psychiatric disorders or mental retardation.Dopamine-D2 receptors function as both pre-synaptic autoreceptors and post-synaptic receptors, and play key roles in regulating dopaminergic neurotransmission. Increased levels of dopamine-D2 receptors or dopaminergic hyperactivity have been implicated in schizophrenia (1-3), and most antipsychotic drugs inhibit dopamine-D2 receptors (4 -6). Although transcriptional regulation of the rat dopamine D2 receptor (DRD2) 5 gene has been examined, very little is known regarding the regulation of the human DRD2 gene. A polymorphism in the putative DRD2 promoter confers decreased transcriptional activity and has been negatively associated with schizophrenia (7). However, the transcriptional mechanisms for regulation of the human DRD2 gene have yet to be elucidated.To identify new transcriptional regulators in the nervous system, we previously characterized the serotonin-1A (5-HT1A) receptor promoter region and identified a novel dual repressor element (DRE) that negatively regulates its expression (8, 9). The DRE consists of adjacent and partially overlapping repressor elements: 5Đ-repressor element (FRE; major regulator in neuronal cells) and 3Đ-repressor element (9). Analysis of DREbinding proteins revealed that a novel protein, Freud-1 (Five prime repressor under dual repression-binding protein-1)/ CC2D1A (Coiled-coil and C2 Domain containing 1A) binds to and represses the 5-HT1A receptor gene throug...