Heme plays central roles in oxygen sensing and utilization in many living organisms. In yeast, heme mediates the effect of oxygen on the expression of many genes involved in using or detoxifying oxygen. However, a direct link between intracellular heme level and oxygen concentration has not been vigorously established. In this report, we have examined the relationships among oxygen levels, heme levels, Hap1 activity, and HAP1 expression. We found that Hap1 activity is controlled in vivo by heme and not by its precursors and that heme activates Hap1 even in anoxic cells. We also found that Hap1 activity exhibits the same oxygen doseresponse curves as Hap1-dependent aerobic genes and that these dose-response curves have a sharp break at ϳ1 M O 2 . The results show that the intracellular signaling heme level, reflected as Hap1 activity, is closely correlated with oxygen concentration. Furthermore, we found that bypass of all heme synthetic steps but ferrochelatase by deuteroporphyrin IX does not circumvent the need for oxygen in Hap1 full activation by heme, suggesting that the last step of heme synthesis, catalyzed by ferrochelatase, is also subjected to oxygen control. Our results show that multiple heme synthetic steps can sense oxygen concentration and provide significant insights into the mechanism of oxygen sensing in yeast.The transcription of many genes in both prokaryotes and eukaryotes is affected by the presence or absence of oxygen and by oxygen concentration itself (1-4). These oxygen-regulated genes can be placed into one of two broad groups: aerobic genes, which are transcribed optimally under aerobic conditions, and hypoxic genes, which are optimally expressed under anoxic or hypoxic conditions. Although considerable progress has been made in identifying oxygen-responsive transcription factors in eukaryotes, the molecular mechanisms by which oxygen sensors directly sense oxygen concentration remain to be further elucidated (1,5). Understanding the molecular mechanism of oxygen sensing is of fundamental biological and biomedical importance, because oxygen sensing is directly related to many diverse physiological and pathological processes, such as erythropoiesis, angiogenesis, wound healing, and ischemia (1, 6 -12).In mammalian cells, a family of hypoxia-inducible transcription factors (HIFs) 1 has been shown to mediate oxygen regulation of many genes (13). Although these HIFs do not directly sense oxygen levels, recent findings have suggested that two enzymes, prolyl hydroxylase (6, 14) and asparaginyl hydroxylase (15, 16), which use oxygen as a substrate to modify the ␣ subunit of HIF1 and cause its inactivation or degradation, could function as oxygen sensors, it has yet to be shown that these prolyl and asparaginyl hydroxylases sense oxygen or changes in oxygen concentration.In yeast, several different kinds of oxygen-responsive transcription factors have been identified. These factors include Rox1, which represses transcription of hypoxic genes under aerobic conditions (17); Mga2, which activa...