Cholesterol biosynthesis and uptake are controlled by a classic end product-feedback mechanism whereby elevated cellular sterol levels suppress transcription of the genes encoding 3-hydroxy-3-methylglutaryl coenzyme A (HMG-CoA) synthase, HMG-CoA reductase, and the low-density lipoprotein receptor. The 5'-flanking region of each gene contains a common cis-acting element, designated the sterol regulatory element (SRE) cells is limited to transcriptional regulation, since posttranscriptional mechanisms of sterol-mediated regulation were intact: the cells retained the ability to posttranscriptionally suppress HMG-CoA reductase activity and to stimulate acyl-CoA:cholesterol acyltransferase activity. These results suggest that SRD-6 cells lack a factor required for SRE-dependent transcriptional activation. We contrast these cells with a previously isolated oxysterol-resistant cell line (SRD-2) that lacks a factor required for SRE-dependent transcriptional suppression and propose a model for the role of these genetically defined factors in sterol-mediated transcriptional regulation.Mammalian cells demonstrate exquisite control over the level of free cholesterol within the cell (reviewed in reference 17). This control is achieved through the concerted action of a number of mechanisms, including the coordinate transcriptional suppression of the genes encoding 3-hydroxy-3-methylglutaryl coenzyme A (HMG-CoA) synthase, HMG-CoA reductase, and the low-density lipoprotein (LDL) receptor. HMG-CoA synthase and HMG-CoA reductase are the first two committed steps in the pathway of cholesterol biosynthesis, and transcriptional suppression of these genes decreases the rate of cholesterol synthesis. The LDL receptor mediates endocytosis of cholesterol-rich lipoprotein particles such as LDL, and transcriptional suppression of the LDL receptor results in a decreased rate of cholesterol uptake. Transcriptional suppression of these three genes appears to be mediated through a common cis-acting sequence, termed the sterol regulatory element (SRE), that resides in the 5'-flanking region of each gene. A protein that interacts with the SRE of the LDL receptor promoter has recently been identified and purified (1,40 levels rise, the rate of degradation of HMG-CoA reductase is enhanced. This increased degradation requires the membrane-spanning domain of the protein, which anchors it to the endoplasmic reticulum (14). This increased degradation results in decreased HMG-CoA reductase activity and a consequent decrease in the rate of cholesterol synthesis. Sterols also inhibit translation of HMG-CoA reductase mRNA (28), which further decreases the rate of cholesterol synthesis. In addition, sterols stimulate acyl-CoA:cholesterol acyltransferase (ACAT) activity by a mechanism that does not require new protein synthesis (4, 16). ACAT resides in the endoplasmic reticulum and catalyzes the transfer of long-chain fatty acyl residues from acyl-CoA to the 3-hydroxyl group of cholesterol to form cholesteryl esters. While free cholesterol can be deleter...