We have identified PIAS1 (protein inhibitor of activated STAT-1), -3, -x␣, and -x as SOX9-associated polypeptides using the Gal4-based yeast two-hybrid system and a cDNA library derived from a chondrocytic cell line. These PIAS proteins were shown to interact directly with SOX9 in two-hybrid, co-immunoprecipitation, and electrophoretic mobility shift assays. SOX9 was sumoylated in cotransfection experiments with COS-7 cells using PIAS and SUMO-1 (small ubiquitin-like modifier-1) expression vectors. SOX9 was also sumoylated in vitro by PIAS proteins in the presence of SUMO-1, the SUMOactivating enzyme, and the SUMO-conjugating enzyme. In COS-7 cells, PIAS proteins stimulated the SOX9-dependent transcriptional activity of a Col2a1 promoter-enhancer reporter. This increase in reporter activity was paralleled by an increase in the cellular levels of SOX9. Cotransfection with a SUMO-expressing vector further enhanced the transcriptional activity of this SOX9-dependent Col2a1 reporter in COS-7 cells, and this additional activation was inhibited in the presence of either SUMO-1 mutants or PIAS RING domain mutants or by coexpression of a desumoylation enzyme. Immunofluorescence microscopy of SOX9-transfected COS-7 cells showed that the subnuclear distribution of SOX9 became more diffuse in the presence of PIAS1 and SUMO-1. Our results suggest that, by controlling the cellular concentrations of SOX9, PIAS proteins and sumoylation may be part of a major regulatory system of SOX9 functions.SOX9, a transcription factor of the SRY (sex-determining region, Y chromosome) family, is required for the establishment and differentiation of several cell lineages, including those of chondrocytes, Sertoli cells of male gonads, glial cells of the nervous system, and others. During chondrocyte differentiation, SOX9 is expressed abundantly in mouse chondroprogenitor cells and overtly differentiated chondrocytes (1) and regulates transcription of cartilage-specific extracellular matrix molecules such as collagen types II (2), IX (3), and XI (4) and aggrecan (5). Heterozygous mutations in the Sox9 gene cause campomelic dysplasia, a severe skeletal malformation syndrome characterized by a generalized hypoplasia of endochondral bones. SOX9 inactivation studies in mice indicate that SOX9 has an essential role in several steps of chondrogenic differentiation, including mesenchymal condensations and overt differentiation of chondrocytes (1, 6). In the absence of SOX9, no chondrocyte marker genes are expressed (1), but the precise mechanism of transcriptional activation by SOX9 of cartilage-specific genes is only poorly understood. The cellular concentration of SOX9 must be tightly regulated in vivo given that campomelic dysplasia is due to haploinsufficiency of SOX9 and because a modest increase in SOX9 expression results in dwarfism in mice (7).Members of the SOX9 family of transcription factors contain a high mobility group (HMG) 3 box DNA-binding domain that is at least 50% identical to an equivalent domain in the sex-determining factor SRY...