The osteocalcin gene encodes a 6-kDa polypeptide, which represents one of the most abundant noncollagenous bone proteins, and the present studies establish that osteocalcin mRNA is detected only in bone tissue. An osteocalcin gene was isolated from a rat genomic DNA library, and sequence analysis indicated that the mRNA is represented in a 953-nucleotide segment of DNA consisting of four exons and three introns. A modular organization of the 5' flanking sequences of the gene is reflected by the presence of at least three classes of regulatory elements, which include the following: (i) RNA polymerase H canonical sequences; (U) a series of consensus sequences for hormone receptor binding sites and cyclic nucleotide responsive elements consistent with physiologic expression ofthe osteocalcin gene; and (Uii) a 24-nucleotide sequence in the proximal promoter region with a CAAT motif as a central element. We have designated this highly conserved sequence as an "osteocalcin box" since only 2 nucleotide substitutions are found in the rat and human osteocalcin genes. We have demonstrated two factors regulating osteocalcin gene expression. First, a 200-fold increase occurs in normal fetal calvaria osteoblasts producing a mineralizing matrix, compared to confluent osteoblasts in a nonmineralizing matrix. Second, contained within the 600 nucleotides immediately upstream from the transcription start site are sequences that support a 10-fold stimulated transcription of the gene by 1,25-dihydroxyvitamin D.There has been much interest in the vitamin K-dependent protein of bone, osteocalcin (bone Gla protein), since its discovery over a decade ago (1). A distinguishing feature of this 5.7-kDa protein (46-50 amino acids, depending on the species), and of functional significance, are 3 residues of the calcium binding amino acid, y-carboxyglutamic acid (Gla). Gla residues are posttranslationally synthesized from selected glutamic acid residues by a vitamin K-and C02-requiring enzyme complex (2). They are located at positions 17, 21, and 24 in all species from swordfish to mammals (1). This highly conserved sequence region from residues 20-34 in the central portion of the molecule, which also includes a disulfide loop (Cys-23-Cys-29), accounts for a structural conformation of the protein in the presence of calcium that promotes a tight binding of the protein to hydroxyapatite (1). The appearance of osteocalcin in embryonic bone coincident with mineral deposition (1), its association with the hydroxyapatite component of the matrix (3), its chemoattractant property for cells capable of bone resorption (4), and its modulated synthesis by the calcitrophic hormone 1,25-dihydroxyvitamin D3 [1,25(OH)2D3] (5-7) suggest a role for the protein in bone turnover. Although many properties of the protein have been identified, the precise function of osteocalcin is still unknown.Osteocalcin is synthesized de novo by osteoblasts as a 10,000-kDa precursor (8). While the majority ofthe processed osteocalcin peptide (5.7 kDa) is deposited in b...