The stem cell leukemia (SCL) gene encodes a tissue-specific basic helix-loop-helix (bHLH) protein with a pivotal role in hemopoiesis and vasculogenesis. Several enhancers have been identified within the murine SCL locus that direct reporter gene expression to subdomains of the normal SCL expression pattern, and long-range sequence comparisons of the human and murine SCL loci have identified additional candidate enhancers. To facilitate the characterization of regulatory elements, we have sequenced and analyzed 33 kb of the SCL genomic locus from the pufferfish Fugu rubripes, a species with a highly compact genome. Although the pattern of SCL expression is highly conserved from mammals to teleost fish, the genes flanking pufferfish SCL were unrelated to those known to flank both avian and mammalian SCL genes. These data suggest that SCL regulatory elements are confined to the region between the upstream and downstream flanking genes, a region of 65 kb in human and 8.5 kb in pufferfish. Consistent with this hypothesis, the entire 33-kb pufferfish SCL locus directed appropriate expression to hemopoietic and neural tissue in transgenic zebrafish embryos, as did a 10.4-kb fragment containing the SCL gene and extending to the 5 and 3 flanking genes. These results demonstrate the power of combining the compact genome of the pufferfish with the advantages that zebrafish provide for studies of gene regulation during development. Furthermore, the pufferfish SCL locus provides a powerful tool for the manipulation of hemopoiesis and vasculogenesis in vivo.T he stem cell leukemia (SCL) gene (also known as Tal-1) encodes a basic helix-loop-helix (bHLH) transcription factor that is a critical regulator of both hemopoiesis and vasculogenesis (1). SCL is normally expressed in hemopoietic stem cells, in committed cells of the erythroid, myeloid, and megakaryocytic lineages, in endothelium, and within specific regions of the central nervous system, a pattern of expression that is highly conserved across vertebrate species from mammals to teleost fish (2-6).SCL is essential for the development of all hemopoietic lineages (7,8). A role in early progenitors is also suggested by the observation that expression of anti-sense SCL suppressed the proliferation, cell cycle progression, and self renewal of a multipotent hemopoietic cell line (9). Distinct functions following lineage commitment are implied by the modulation of SCL mRNA and protein levels during erythroid and myeloid differentiation (10-14). Moreover, enforced SCL expression enhanced erythroid differentiation of hemopoietic cell lines (14, 15) and increased erythroid and megakaryocytic differentiation of normal CD34-positive progenitors (16,17).SCL also plays a crucial role in the formation of hemangioblasts, bipotent progenitors of both blood and endothelium. Ectopic expression of SCL mRNA in zebrafish embryos specifies hemangioblast formation from early mesoderm and results in excessive production of blood and endothelial progenitors (3). In keeping with this, SCL can parti...