An important relationship between transcription and initiation of DNA replication in both eukaryotes and prokaryotes has been suggested. In an attempt to understand the molecular mechanism of this interaction, we examined whether transcription can induce DNA replication in vitro by constructing a system in which both replication and transcription were combined. Relaxed circular DNA possessing a replication initiation zone located upstream of the human c-myc gene and a T7 promoter near the P1 promoter of the gene was replicated in the presence of T7 RNA polymerase. In our model system, replication was carried out with the proteins required for simian virus 40 DNA replication. DNA synthesis, which was dependent on both T7 RNA polymerase and the replication proteins, was detected mainly in the promoter and upstream regions of the c-myc gene. Blocking RNA synthesis at the initial stage of the reaction severely reduced DNA synthesis, suggesting that RNA chain elongation is required to induce DNA synthesis. The results indicated that transcription can induce DNA replication in the upstream region of the transcribed gene, most likely by introducing negative supercoiling into the region, which results in unwinding of the DNA duplex.DNA replication in prokaryotes and eukaryotic viral systems is significantly affected by transcription and/or transcription factors (11, 37). In Escherichia coli, transcription of the gid gene, located on the left side of the replication origin, stimulates oriC plasmid DNA replication (1). In polyomavirus-infected cells, the binding of the transcription factor AP1 to the flanking region of the origin markedly stimulates viral DNA replication in vivo (19, 41). Nuclear factor I (NFI) (42) and NFIII (45), both of which are required for adenovirus DNA replication in vitro, are identical to the cellular transcription factors CTF (47) and OCT1 (44), respectively. The binding site for the transcription factor ABF1 (12), which constitutes the B3 domain of ARS1, is required for DNA replication in Saccharomyces cerevisiae (36). In higher eukaryotes, nearly all the actively transcribed genes are replicated early in S phase whereas inactive genes are replicated late in S phase (17, 23). Colocalization of transcription and DNA replication in nuclei has been shown in permeabilized HeLa cells (22). However, the molecular mechanisms underlying the relationship between transcription and replication remain unclear.Both specific sequences in the origin and initiator proteins that interact with these sequences are essential for the initiation of DNA replication in prokaryotes (9) and in eukaryotic viruses (8). In S. cerevisiae, both essential origin sequences (10) and a protein complex (3) that binds to the origin sequences have been identified. While short sequences essential for DNA replication have not been found in higher eukaryotes, an increasing number of regions in the chromosome in which DNA replication initiates have been mapped and are called initiation zones (5,20,24). Several of these have been ident...