Within the promoter region of the rat prolactin gene lies a TA-rich imperfect palindrome. The possible functions of the 18-base-pair symmetrical sequence were investigated by using an in vitro transcription system. Prolactin templates with and without the palindrome were transcriptionally assayed in both pituitary and nonpituitary extracts. Our results indicated that the palindromic sequence has at least two functions in the regulation of prolactin transcription.Enhancer elements are typically located a considerable distance from the transcriptional initiation site at position + 1 and have been shown to stimulate transcription in a tissuespecific manner in many gene systems (12,18). In addition, several recent studies have demonstrated that cis-acting elements within the proximal 5' region of some genes are also involved in cell-specific regulation (1,7,10,20). In the rat prolactin gene, an enhancer from positions -1850 to -1530 and a region of the promoter between positions -422 and -36 have been shown to augment prolactin transcription in pituitary-derived cells but not in nonpituitary-derived cells (14).Within the segment of the rat prolactin promoter from positions -422 to -36 lies an 18-base-pair (bp) imperfect palindrome, TGATTATATATATATTCA (13). Since sequences with complete or limited dyad symmetry are found frequently within regulatory elements of both procaryotic (15) and eucaryotic genes (2,8,9,11,16,17,19), it is plausible to suspect that the palindrome (positions -63 to -46) might be involved in the cell-specific regulation of prolactin transcription.This symmetrical sequence also contains five sequential TA repeats. The nucleotide composition of the palindrome is of particular interest since it constitutes a TATA homology (M. L. Goldberg, Ph.D. thesis, Stanford University, Stanford, Calif., 1979). This has raised the possibility of a second TATA element upstream of the proximal TATA box (positions -28 to -23).In the present study, the possible functions of the palindrome were investigated. Prolactin templates with and without the palindrome were assayed in pituitary-and nonpituitary-derived nuclear extracts to determine whether the palindrome is involved in the cell-specific regulation of prolactin transcription. Furthermore, since the palindrome TA repeats are homologous to the TATA consensus se- quence, the possibility of an mRNA initiation site 20 to 30 bp downstream of the palindrome was also explored.Prolactin transcription in vivo. The in vivo sites of prolactin transcriptional initiation were determined by primer extension analysis of total RNA extracted from GH3 cells (Fig. 1). These cells, which were derived from a rat pituitary tumor, constitutively produce high levels of prolactin. Approximately 10 ,ug of GH3 RNA was isolated by a modified guanidine hydrochloride procedure (5), and the RNA was assayed by primer extension analysis. An oligonucleotide primer complementary to prolactin RNA was used to detect two sites of transcriptional initiation, a major one at position + 1 and a minor RN...