This study examines mucosa-specific regulatory pathways involved in modulation of interferon-g (IFN-g) in lamina propria T cells. Previous studies identified mucosa-specific CD2 cis-elements within the À204 to À108 bp IFNG promoter. Within this region, a single-site nucleotide polymorphism, À179G/T, imparts tumor necrosis factor-a stimulation of IFNG in peripheral blood lymphocytes, and is linked with accelerated AIDS progression. We discovered a putative estrogen response element (ERE) introduced by the À179T, which displays selective activation in peripheral blood mononuclear cells (PBMC) vs lamina propria mononuclear cells (LPMC). Transfection of PBMC with constructs containing the À179G or À179T site revealed CD2-mediated enhancement of the À179T compared to À179G allele, although, in LPMC, a similar level of expression was detected. Electrophoretic mobility shift assay (EMSA) analysis demonstrated CD2-mediated nucleoprotein binding to the À179T but not the À179G in PBMC. In LPMC, binding is constitutive to both À179G and À179T regions. Sequence and EMSA analysis suggests that the À179T allele creates an ERE-like binding site capable of binding recombinant estrogen receptor. Estrogen response element transactivation is enhanced by CD2 signaling, but inhibited by estrogen in PBMC but not in LPMC, although expression of estrogen receptor was similar. This is the first report to describe a potential molecular mechanism responsible for selectively controlling IFN-g production in LPMC.